On January 8th, 2018, the Ministry of Energy (SENER) published in the Federal Official Gazette, an Accord that sets forth the Rulebook for the Development of Wholesale Electricity Market Rules (the Rulebook), whereby the guidelines and procedures to develop Wholesale Electricity Market Rules (the MEM) are made public.

The Rulebook aims to further develop the content of the Guidelines of the Electricity Market (the Guidelines), specifically Term 1.5 which provides the regulatory framework of MEM Rules.

Among the provisions worth mentioning are the aspects that the authorities are required to consider when conducting the evaluation, examination and amendments to MEM Rules, which establish that the Energy Regulatory Commission (the CRE) will be responsible for analyzing, authorizing and, if appropriate, publishing the proposals to amend the Guidelines, while the National Centre of Energy Control (CENACE) will be responsible of undertaking actions in the area of MEM Operative Provisions.

Both CRE and CENACE will evaluate and review every three years that the MEM Guidelines and Operative provisions ensure equality within the participants and promote the development of the National Electric System. These agencies will submit the proposed amendments to such provisions for consultation of MEM Participants, the Independent MEM Monitor of MEM1, SENER, as well as the carriers and distributors (all jointly defined as Interested Parties), in accordance with the procedure established by Chapters 3 and 4 of the Rulebook.

The proposed amendments to the Guidelines and to the Operative Provisions will be published in CRE's web page as well as in the MEM Information System CENACE's web page for consultation by the Interested Parties, and once the proposed amendments are published, the Interested Parties will be able to submit their comments and opinions through such electronic means.

Finally, Chapter 5 of the Rulebook establishes the content and minimum requirements that the proposed amendments to the MEM Rules must contain, while Chapter 6 contains the procedure to be followed by the MEM Participants to conduct an analysis of the amendments to the Guidelines and Operative Provisions through the MEM Rules review and consultation committees.

The Accord became effective on 22 January 2018.

1 Group of independent experts or collegiate committee, created by the Market Surveillance Authority to perform surveillance functions of MEM Participants, the MEM and the instructions of CENACE, in order to provide assistance and support to the Market Surveillance Unit.