Secondary legislation sets the new rules of the energy sector in Mexico
On 30 April 2014, the Mexican government presented the Energy Reform's secondary legislation. This legislation contains the proposed governing laws of the reform. The proposal may still change as a result of on-going political negotiation. However, given the legislation's lengthy preparation and extensive consultation, it is unlikely to undergo major changes. We anticipate that the legislation will be approved by the end of June.
One of the main goals of the secondary legislation is to increase competition in both mid and downstream markets. In order to achieve this the government is proposing a five year timeline, 2019, to ensure that no participant controls more than 50% of natural gas transport and retail sales. By 2029, ownership will be limited to 20%. Only Pemex and CFE will be affected by these restrictions as their current market shares are above the threshold. Assets currently owned by Pemex or CFE above the 50% limit should be made available for private companies according to the rules that CRE will define within the next year