ARTICLE
25 April 2017

Mexico Issues Manual For Bilateral Power Transactions And Recording Coverage Agreements

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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...
Mexico Energy and Natural Resources

Jose Antonio Prado and Carlos Ochoa are Partners and Alberto Esenaro Arteaga ia an Associate in the Mexico City office.

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.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

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