Restructuring Mexico’s Electricity Market: Origin and Outlook
This report takes a fresh look at the origin and policy goals of the electricity reforms in Mexico. Just as the Electricity Act of 1992 sought to correct unintended consequences of the nationalization in 1960; so too the electricity package of 2013-15 seeks to correct unintended negative consequences of the 1992 regime. The new regime preserves a CFE as the central economic actor. Its high costs should translate to good head-room for power developers. Exhibit A is a glossary of key terms associated with a farmout agreement.
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