On November 19, 2015, the Ministry of Energy (“SENER”) published in the Federal Official Gazette, the Long Term Auctions Rulebook (the “Rulebook”) setting the procedures, regulations, instructions, calculation principles, guidelines and examples to regulate the management, operation and planning of the Wholesale Electric Market (“MEM”) for long term auctions.

The Rulebook is part of the Market Operating Provisions and details the procedures related to the operation of the MEM, established in the Guidelines for the Electric Market (the “Guidelines”) published on September 8, 2015 in the Federal Official Gazette.

The regulations and provisions that comprise the Rulebook develop the content of the Guidelines for long term auctions. This procedure is subject to the following:

  1. The purpose of the auctions is to enter into agreements with parties responsible for load centers, in order to meet their needs for power, cumulative energy[1] and clean energy certificates. 
  2. Any of the following parties may participate in the auctions:

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  1. The National Center for Energy Control (“CENACE”) will call for an auction each year and will publish the corresponding call during the month of April, except for this year, as the call is expected to be released on November 30 and to be awarded on March, 2016.
  2. The costs for participating in the auctions are as follows[2]:
    • 5,000 UDIs[3], approximately MXN $26,800 for the acquisition of the auction rules;
    • 50,000 UDIs, approximately MXN $268,000 for the assessment on the request to register as potential buyer; and
    • 50,000 UDIs, approximately MXN $268,000 for the assessment on the request to prequalify, plus 5,000 UDIs, approximately MXN $26,800 for each sale offer put up for auction.
  3. During the prequalification stage, bidders must: (i) prove their legal, financial, technical and execution capacities to comply with the sale offer to be submitted in the auctions, and (ii) prove that the payment related to the acquisition of the auction rules has been made.
  4. Bidders that requested the prequalification of their sale offers, must submit before the CENACE, aguarantee with a minimum amount that shall be determined by each bidder, according to the following:
    • 300, 000 UDIs, approximately MXN $1,600,000, regardless of the number of offers to be submitted;
    • 65,000 UDIs, approximately MXN $348,000 for each MW of energy to be offered each year;
    • 30 UDIs, approximately MXN $161 for each MWh of cumulative energy to be offered each year; and
    • 15 UDIs, approximately MXN $80 for each clean energy certificate to be offered each year.
  5. The term of the awarded agreements is 15 years for agreements related to power or cumulative energy and 20 years for agreements related to the clean energy certificates.