On January 25 2016 the National Centre for Energy Control (CENACE) published in the Federal Register the following model agreements:

  • the agreements for the technical and commercial operation of transmission and distribution infrastructure, to be entered into between CENACE and the relevant transporters, distributors and contractors; and
  • market participant agreements for generators, suppliers, non-supplier marketers and qualified users.

The transmission and distribution agreements establish the terms and conditions applicable to the provision of transmission and distribution services (eg, invoicing, operation and commercial terms) and set out the actions that shall be jointly coordinated between CENACE and the relevant transporters, distributors and contractors in order to ensure compliance with the open access obligations contemplated in the applicable laws. As a general rule, the transmission and distribution agreements will be effective for an undefined term; however, any party may terminate the agreement at any time with written notice. Some of the main provisions contemplated in the transmission and distribution agreements include:

  • CENACE's right to invoice the transmission and distribution services and to issue operation instructions to the relevant transporter, distributor or contractor;
  • the requirement that transporters, distributors and contractors establish a maintenance programme and comply with a number of reporting and indemnity obligations; and
  • detailed force majeure provisions.

The market participant agreements grant market participants access to the wholesale electricity market and establish the terms and conditions applicable to the relationship between CENACE and market participants in connection with the transactions handled through the wholesale electricity market. The agreements will be effective for an undefined term, unless any cause for termination arises. Causes for termination include:

  • the market participant's material breach of its obligations under the Electricity Industry Law, the market rules or the market participant agreement; and
  • lack of activity for a certain period.

The market participant agreements include a detailed description of the rights and obligations of each party (which vary depending on the type of market participant) and the rules applicable to the suspension of the market participant's activities on the wholesale electricity market.

For further information on this topic please contact Rogelio López-VelardeAmanda ValdezDaniela Monroy or Diego Campa at López Velarde, Heftye y Soria by telephone (+52 55 3685 3334) or email (rlopezv@lvhs.com.mxavaldez@lvhs.com.mxdmonroy@lvhs.com.mx or dcampa@lvhs.com.mx). The López Velarde, Heftye y Soria website can be accessed at www.lvhs.com.mx.

This article was first published by the International Law Office, a premium online legal update service for major companies and law firms worldwide. Register for a free subscription.