Energy Reform With Regards to Electricity

On August 11 2014, a package of reforms to Mexico’s secondary energy laws (the “Energy Reform”) was published. This Energy Reform is based on the amendment of Articles 25, 27, and 28 of the Constitution and the corresponding inclusion of 21 temporary articles regarding energy issues in the Constitution, which changes went into effect on December 21, 2013 (the “Constitutional Reform”). The aforementioned legal changes were enacted pursuant to the objectives established by the 2013-2018 National Development Plan.

In addition to the modification of various existing laws, the Energy Reform contemplates the issuance and publication of the following nine new laws:

(i) Hydrocarbons Act;

(ii) Hydrocarbon Revenues Act;

(iii) Petróleos Mexicanos Act;

(iv) Mexican Oil Fund for Stabilization and Development Act;

(v) Creation of the National Agency for Industrial Security and Environmental Protection

of the Hydrocarbon Sector Act;

(vi) Electric Industry Act;

(vii) Geothermal Energy Act;

(viii) Federal Electricity Commission Act; and

(ix) Coordinated Regulating Energy Sector Agencies Act.

This Client Alert is being issued to clients for the purpose of explaining the contents of the Energy Reform as specifically regards the electricity industry and, in particular, the most important aspects of the Electric Industry Act (the “Act”).

Please see full alert below for more information.

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DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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