Planning Ahead: Progress In Implementation Of Mexican New Electricity Market - Energy and Natural Resources - Mexico Law Articles in English - Mondaq Business Briefing - Books and Journals - VLEX 690551881

Planning Ahead: Progress In Implementation Of Mexican New Electricity Market

Author:Berdeja Abogados SC
Profession:Berdeja Abogados SC
 
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Introduction

On August 7, 2014, the Mexican Congress passed legislation implementing the energy reform, which legislation was signed into law by the President on August 11, 2014 and was published in the Official Daily of the Federation on such date. The new legislation came into effect on the day following the date of its official publication. Please refer to our memorandum dated July 29, 2014 for a review of the implementing legislation.

The Ministry of Energy released Power Market Rules on September 8, 2015. The Power Market Rules regulate (i) the functions of various participants in wholesale electricity markets, (ii) rates applicable to transmission, distribution, National Center for Energy Control services, and other significant services required in the wholesale electricity market, (iii) disclosure and dissemination of market information, and (iv) disciplinary measures. The Rules set forth two main stages for implementation and a schedule to carry out the same. Please refer to our memorandum dated September 29, 2015 for a review of the Rules.

Electricity Market

Implementation of the Mexican new electricity market continued at a rapid pace in early 2016.

The day-ahead market started operations on January 26, 2016 in Baja California Norte and on January 28, 2016 in respect to the Mexican Interconnected System and is functioning satisfactorily. The real time market is being fine-tuned and is envisaged to start operations on July, 2016.

New Regulations

The Ministry of Energy ("SENER") and other relevant regulators issued regulations further implementing the Power Market Rules of September 8, 2015 (the "Rules"). Such regulations include the Long Term Auctions Manual issued by SENER on November 19, 2015, the Rules for Transmission and Distribution of Electricity issued by the Energy Regulatory Commission (the "Commission") on February 16, 2016 and the General Terms for Supply of Electricity issued by the Commission on February 18, 2016.

The Long Term Auctions Manual sets forth the rules under which power producers may offer to sell at public auctions capacity, electricity and clean energy certificates. The Long Term Auctions Manual establishes the rules for construction and operation of new power plants.

The Rules for Transmission and Distribution of Electricity establish rules for the operation of private companies and state-owned corporations that render public services of transmission and distribution of electricity through the National Transmission...

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