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ARTICLE · 26 FEBRUARY 2020

Potential Amendments To Self-Supply Permits Regime On Hold

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On February 13, 2020, Mexico's Regulatory Energy Commission submitted to the Regulatory Improvement Commission a draft proposed amendment of the General Administrative Provisions to request amendments or assignments ...

MexicoEnergy and Natural Resources

On February 13, 2020, Mexico's Regulatory Energy Commission (CRE) submitted to the Regulatory Improvement Commission (CONAMER) a draft proposed amendment (the "Draft") of the General Administrative Provisions to request amendments or assignments of generation or supply permits1 (the "Provisions"). The submission included a request for an impact regulatory (MIR)2 exemption in order to avoid the full Regulatory Impact Analysis, which could lead to a comprehensive inquiry into the possible negative effects of changing the terms of the Provisions.

The goal of the Draft was to (i) forbid permit holders of self-supply generation permits ("LSPEE3 Permit Holders") from including new consumers; and (ii) further restrict the type of consumers that could be supplied by LSPEE Permit Holders. This goal is in line with the presidential guidelines to strengthen CFE's role within the power generation industry and prevent abuses from private generators.

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