MEXICO Trends and Developments Contributed by: Bernardo Cortés and Fernando Quesada, Cortés Quesada Abogados, S.C.
principle, would not be subject to antitrust scrutiny). • Supplementary legal framework: while public, civil and commercial laws apply to CFE in a supplementary manner (depending on the nature of the act), it is specified that the con- tent of such laws must be applied as long as they do not oppose the special regime of CFE and, where appropriate, the interpretation that privileges the best performance of the pur- pose and essence of CFE in accordance with its status as a public company of the State. • Contracting and dispute resolution: CFE has contracting procedures (public bid, as a general rule) and a legal framework for agree- ments entered into by CFE, including govern- ing law for acts during the contracting proce- dure and for those after the relevant contract is executed, as well as dispute resolution mechanisms (in which federal Mexican courts are the general rule). Under this new structure, CFE is mandated to perform transmission, distribution, marketing and basic supply of electricity activities directly. For other activities, CFE may operate directly or through affiliated entities. In addition, all real estate owned by CFE – includ- ing land, buildings and related infrastructure – is exempted from property and possession taxes, regardless of its use or purpose. Following the enactment of the New Law of CFE, the former generation, distribution and basic supply services subsidiary companies were dis- solved. CFE assumed all corresponding rights and obligations of these now-defunct entities by operation of law. The CNE and regulated activities
The newly created CNE replaces and absorbs the former Energy Regulatory Commission, now functioning as a public instrument of SENER. The CNE is in charge of overseeing both the administrative and economic regulation of the power sector, including setting and supervising the applicable rates across the electricity value chain (distribution, transmission, basic supply, etc). The CNE reassumed legal terms and started operations as of June 2025, except for certain matters (including new generation permit appli- cations and change in control authorisations). Once the Regulations to the LESE are issued, the CNE will be open for all procedures and applications on electricity matters within its scope of authority. The CNE is governed by a General Director and Technical Committee, both of which have already been appointed. This governing body is authorised to evaluate and grant permits for gen- eration, commercialisation and electricity supply activities. Meanwhile, SENER retains authority over the issuance of import and export permits for electricity. The LESE includes principles of legal separation of the performance of generation, marketing and supply feedstock (eg, fuels) activities. However, these principles are no longer applicable to CFE. The law also grants SENER broad interven- tion powers under certain circumstances. For instance, SENER may assume control of sector participants or mandate structural measures, such as accounting, operational or functional separation of members of the power sector. If such measures are deemed insufficient, SENER may even order the divestiture of assets, rights,
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