Restructuring Mexico’s Electricity Market: Origin and Outlook

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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Written by

George Baker

Baker & Associates offers niche-market business and policy intelligence related to Mexico's oil and gas, power and chemical industries. Over 1,000 reports have been issued in the last 20 years. Subject matter expert and publisher George Baker, who directs the firm, has carried out consulting assignments starting in the late 1970s at the height of the Oil Boom in Mexico. He brings bilingual and bicultural skill-sets to understanding and responding to challenges of business and public policy, coupled with a deep familiarity with the history and idiosyncrasies of the Mexican operating environment.

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