Energy Reform Implementation Laws - Electricity Industry Law

On April 30, 2014, the Federal Government submitted to Congress a package of nine new laws and twelve energy statutes to be amended ("supplemental laws)," resulting from the recent changes to Mexico's Federal Constitution with respect to the energy reforms.

The most important aspects of the Electricity Industry Act proposal (the "Law") are described below:

• Planning and control of the National Electricity System ("SEN" for its Spanish acronym) and the transmission and distribution utilities are strategic areas that may only be carried out by the State; however, the State may enter into agreements for such services with private entities.
• The Federal Electricity Commission ("CFE" for its Spanish acronym) will continue being the electricity service supplier to residential users and small and medium commercial and industrial users.