MEXICO Law and Practice Contributed by: Bernardo Cortés and Fernando Quesada, Cortés Quesada Abogados, S.C.
alignment with national planning priorities and CFE’s infrastructure development programme. 4.6 Transmission Charges and Terms of Service Transmission rates are issued and approved annually by the CNE. These rates are calculated using method- ologies that ensure a reasonable return of investment and cost recovery on the operation, maintenance, financing, investment, improvement, expansion and depreciation of the NTG, and also accounting for both technical and non-technical losses. In addition, the CNE recently issued a specific Methodology for Determining the Charge for the Electricity Transmis- sion Service, applicable to holders of self-supply and cogeneration permits granted under the former LSPEE, replacing the historical wheeling regime appli- cable to such legacy projects. Market participants pay for transmission services through CENACE, which incorporates these rates into the settlement processes of the WEM. Basic sup- ply rates also consider specific transmission costs, reflected as part of the variable energy charges. Under the new Transmission Methodology, legacy self-sup- ply and cogeneration projects electing to remain under the LSPEE regime will become subject to the revised transmission tariff as of October 2026. By contrast, projects that elect to migrate under the Migration Guidelines may preserve the transmission regime cur- rently applicable during the migration process, subject to meeting the applicable statutory deadlines. The CNE is also empowered to issue general terms of service for transmission services, outlining the scope and types of service offered, credit terms, conditions for service suspension, penalties and compensation mechanisms, and procedures for addressing com- plaints from users. 4.7 Open-Access and Non-Discriminatory Transmission Open access to the NES is recognised as universal and a public utility service obligation, provided that it is technically feasible and does not compromise the reliability of the system. CENACE is mandated to ensure that open access obligations are met while safeguarding the operational reliability of the NES.
The legal, financial and technical requirements to allow the interconnection of generation facilities and the connection of load points are established in the Market Rules, which include a dedicated Manual detailing the procedures. The interconnection and connection processes involve several technical stud- ies to identify reinforcement works (which are incor- porated in the relevant interconnection or connection agreements), including indicative, system impact and facility studies. Subject to completion of the relevant studies, CFE is obliged to allow the interconnection and connection of power stations and loads on a non-discriminatory basis. In this regard, CENACE instructs CFE to enter into the agreement with the interested party. However, available interconnection capacity, reinforcement obli- gations and compliance with planning priorities may materially affect project timing and economic viabil- ity, particularly for large-scale generation and storage projects. Upon completion of the required infrastructure, veri- fication units certify that the interconnection facilities comply with the technical specifications established in the agreements. Interconnection or connection works may be executed directly and financed by the interested party or integrated into the expansion and improvement works outlined in PLADESE. 5. Distribution 5.1 Constructing and Operating Electricity Distribution Facilities Distribution services are exclusively reserved to CFE, pursuant to the Mexican Constitution and the LSE. The operation of General Distribution Grids (GDGs) is governed by the LSE and the General Administrative Provisions on open access and terms of service for distribution services, as approved by the CNE.
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