What Mexico's Electricity Reforms Mean For Tax

Unbundling, the creation of a wholesale electricity market and an increased push for clean energy carry important tax implications and open new opportunities.

After 75 years of nationalization, Mexico's oil and gas and electricity sectors are opening fully to the private sector. Unbundling, the creation of a wholesale electricity market and an increased push for clean energy carry important tax implications and open new opportunities.

According to Bank of America, Mexico's sweeping energy reforms could generate an additional US$20b of foreign direct investment as early as 2015, strengthen the peso and boost economic growth. (See our RECAI publication, in the Mexico section.)

"We have all the regulations but still do not know what the rules of the market will be."