BASHAM NEWS

ELECTRIC ENERGY GENERATION POLICY

ELECTRIC ENERGY GENERATION POLICY

On December 08, 2018, Mexican President, Andrés Manuel López Obrador announced the general guidelines for what is to become the public policy related to the electric generation in Mexico.

Although an specific document has not been issued by the Federal Government, it appears that the new public policy will aim to: (i) fight corruption inside the Mexican State-Owned Productive Company, Federal Electric Commission (“CFE”); (ii) modernize the 60 (sixty) existing hydroelectric power plants located thought México; (iii) prepare a plan to recover the self-sufficiency, meaning that the Mexican company should increase it generation capacity to decrease the purchase of electricity from private companies; (iv) decrease the purchase of electric energy from private companies; (v) building new hydroelectric power plants, if possible; (vi) overtake the deterioration of CFE plants and installations; (vii) establish a good policy for the use of fuels; and (viii) strengthen training and technological development for all of CFE employees. 

The plan announced by López Obrador to be implemented by CFE aim to strengthen such company by increasing its role in all activities related to the electric energy, including the production by means of clean technologies. 

Mexico´s President expects, at first, to rehabilitate the existing hydroelectric plants by using an additional amount of $20.00 billion pesos (approximately USD 1.0 billion) to be requested to the Federal Congress for the Federal budget applicable for year 2019, which discussions and approval are to take place during December 2018.

Thelawyers of the energy, mining and infrastructure area of our firm are availablefor any questions or comments on the above.

Sincerely 

Juan Carlos Serra

serra@basham.com.mx

Jorge Eduardo Escobedo Montaño

jescobedo@basham.com.mx

Jorge Cobos Franco

jcobos@basham.com.mx

Jorge Campuzano

jcampuzano@basham.com.mx

Mexico City, December 12th, 2018