Mexico Issues Manual for Bilateral Power Transactions and Recording Coverage Agreements

Mexico's Energy Reform of 2013 opened activities of the country's Power Market to private investors. Mexico is passing from a state-run power company, the Comisión Federal de Electricidad (CFE), to private investors and contractors.

Under the Power Industry Law, participants in the Wholesale Power Market (MEM) may perform bilateral financial transactions (FBT) to transfer financial obligations of power or ancillary services, or may perform bilateral power transactions (PBT) to transfer the legal obligation to deliver power.

In January 2017, Mexico's Ministry of Energy issued a manual with proceedings, rules, instructions and examples of those transactions, including proceedings for recording power coverage agreements.

This manual is part of the set of laws and regulations to make the MEM functional, and it is expected to create opportunities for investors sector-wide.

Holland & Knight's energy law attorneys have extensive experience in the power generation industry, including a variety of projects in the energy sector. For more information, contact Holland & Knight's Mexico City office.

Information contained in this alert is for the general education and knowledge of our readers. It is not designed to be, and should not be used as, the sole source of information when analyzing and resolving a legal problem. Moreover, the laws of each jurisdiction are different and are constantly changing. If you have specific questions regarding a particular fact situation, we urge you to consult competent legal counsel.