Mexican Energy Regulatory Commission Suspends Proceedings

During 2020, the Mexican Energy Commission (Comisión Reguladora de Energía or CRE) suspended activities during the emergency caused by the COVID-19 pandemic. As a consequence, time periods to many proceedings, such as permit requests, modifications or controversies, were delayed, and many remain unresolved.

CRE is the specialized agency that regulates diverse activities in the electricity and oil and gas sectors in Mexico (like transport, storage, distribution and commercialization), with authority for granting and revoking permits of regulated activities, approval of regulated tariffs, surveillance of the market and sanctions, among others.

On Jan. 18, 2021, CRE issued a new suspension of time periods under the following terms:

• All proceedings are suspended until federal or Mexico City authorities determine that there is no pandemic risk for activities of the federal administration.
• All acts of authority, subpoena, requests or filings before CRE made during such period will be considered made when the suspension is over.
• The CRE's executive secretary can enable days and hours during the suspension period to resolve matters that are deemed necessary.
• The schedule for accessing CRE facilities or the filing office will be updated based on the instructions of the sanitary authorities.

What to Consider

This new suspension adds to accumulated proceedings pending to be resolved by CRE that have delayed development of a number of projects in Mexico. Therefore, in order to prevent business disruption, it is important that project stakeholders assess the specific impact and take immediate actions to preserve rights and ongoing development, as some projects have moved forward through the many suspension periods already. A deep legal and regulatory analysis is suggested to confirm possibilities of success and options.

Holland & Knight attorneys have extensive experience in energy and regulatory matters for the electricity and oil and gas sectors, representing government entities and private companies. Our attorneys also have permitting experience for all type of projects. This information may change on a frequent basis and is subject to adjustments. For more information, contact the authors or Holland & Knight's Mexico City office.

Information contained in this alert is for the general education and knowledge of our readers. It is not designed to be, and should not be used as, the sole source of information when analyzing and resolving a legal problem, and it should not be substituted for legal advice, which relies on a specific factual analysis. Moreover, the laws of each jurisdiction are different and are constantly changing. This information is not intended to create, and receipt of it does not constitute, an attorney-client relationship. If you have specific questions regarding a particular fact situation, we urge you to consult the authors of this publication, your Holland & Knight representative or other competent legal counsel.

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