On July 29, 2020, the Board of Commissioners of the Energy Regulatory Commission ("CRE") approved the "Regulatory Program 2020" (the "Regulatory Program") by means of Resolution No. A/024/2020. The Regulatory Program is a planning program of CRE that sets forth secondary regulation intended to be issued or modified, applicable to both the electricity and hydrocarbon markets; as well as the estimated date on which the CRE´s Board of Commissioners intends to approve such regulation.
It should be noted that: (i) the Regulatory Program only indicates certain regulatory instruments, but it does not indicate the scope or content of the regulations to be issued or modified throughout the rest of the year 2020 and 2021 and (ii) given that the instruments are general regulations, its issuance and modification must comply with the applicable procedure set forth in the General Law for Regulatory Improvement.
The Regulatory Program contains 35 regulations distributed as follows: (i) three in hydrocarbon standardization and verification matters, (ii) five in natural gas and petroleum matters, (iii) five in LNG matters, (iv) four in petroleum products matters, (v) two in hydrocarbon transversal matters, (vi) fifteen in power matters and (vii) one in connection with CRE´s electronic central filing office.
Among the instruments indicated in the Regulatory Program, the following stand out due to their relevance in the sector:
- Resolution that modifies and incorporates several concepts to Resolution number RES/142/2017, by means of which the general regulations, contract models, methodology for calculating the consideration and the general technical specifications, applicable to power plants of distributed generation and clean distributed generation are issued.
- Resolution by means of which the general administrative regulations regarding controllable demand for basic supply are issued.
- Resolution by means of which the general administrative regulations for the countable, operative and functional separation of the members of the Electrical Industry are issued.
- Resolution by means of which the general administrative regulations that establish the criteria of efficiency, effectiveness, quality, reliability, continuity, security and sustainability of the National Electrical Grid: Grid Code (Código de Red) are updated.
- Resolution by means of which the general administrative provisions regarding contributions, the calculation methodology of the contributions, the criteria and the bases to determine and update the amount of the contributions and the corresponding model agreements are issued.
- Updating of the general administrative regulations that establish the terms and conditions for submitting information regarding the corporate purpose, legal, technical and financial capability, as well as the description of the project, and the form of the application for electric power generation permits.
- General administrative regulations that set forth the terms for requesting authorization for the modification or assignment of the power generation or supply permits.
- Resolution by means of which CRE modifies and complements the general administrative regulations for the operation of the certificate management system and compliance with clean energy obligations.
- Resolution by means of which the general administrative regulations governing Ancillary Services are issued.
- Update of the Power Plant Interconnection and Load Center Connection Guidelines.
- Update of the open access and non-discriminatory interconnection contract model for power plants interconnected to the National Transmission Grid or the General Distribution Grid.
- Update of the open and non-discriminatory connection contract model for load centers connected to the National Transmission Grid or the General Distribution Grid.
Resolution that modifies the Official Mexican Standard NOM-016-CRE-2016, quality specifications for petroleum products.
General administrative regulations regarding integrated natural gas storage and pipeline transportation systems.
Liquefied Petroleum Gas
- General administrative regulations governing schemes for the exchange of portable or transportable containers subject to pressure of LP gas.
- General administrative regulations regarding open access and provision of transportation services by pipeline and storage of LP gas.
Amendment to the Resolution by means of which CRE interprets the Hydrocarbons Law in order to define the scope of the regulation on petroleum products and petrochemicals.
Hydrocarbon Transversal Matters
- Resolution by means of which the general administrative regulations for the public sale through multimodal service station are issued.
- Resolution by means of which CRE interprets for administrative purposes the cross-participation regulated in the second and third paragraphs of article 83 of the Hydrocarbons Law and issues the guidelines that establishes the procedure for its authorization.
Resolution by means of which the general rules for the operation of the CRE´s electronic central filing office are modified.
The regulatory instruments intended to be amended or issued pursuant to the Regulatory Program are consistent with the Energy Sector Program 2020 – 2024, which sets forth as one of its priority objectives to strengthen the Federal Electricity Commission (CFE) and Petroleos Mexicanos (PEMEX), as well as to strengthen the State’s role in the regulated activities performed by the social and private sector in the power and hydrocarbon markets.
Gustavo Neyra Lopez (White & Case, Legal Intern, Mexico City) contributed to the development of this publication.
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