By: Damian Gonzalez
We allow ourselves to inform you that in January 11th 2016, it was published in the Official Journal of the Federation the terms for the strict legal separation of the Comisión Federal de Electricidad (CFE).
Throughout this instrument, there are established the terms for the strict legal separation that CFE should observe for the realization of Generation, Transmission, Distribution, Trading and Supplying Primary Inputs services, and to individualize its participation in the market through each unit it is divided, generating economic value and profitability for the Mexican State as its owner; likewise, there are established the general dispositions for the assets assignation to the Subsidiary Productive Enterprises (EPS for its acronym in Spanish) and the Affiliated Enterprises (EF for its acronym in Spanish) created in terms of the CFE Law to fulfill the separation referred to in the Transitory Fourth of the LIE.
The activities mentioned hereafter (Independent Activities) will be realized by the CFE independently with each other, under strict legal separation conditions and throughout the EPS, EF or any partnership model provided by the CFE Law as the case may be:
- Generation;
- Transmission;
- Distribution;
- Basic Supply;
- Basic Supply different trading; and,
- Supplying Primary Inputs.
Generation (vertical separation).
To perform Generation activities, CFE should act through EPS, EF or any partnership model allowed by the CFE Law. Generation centrals that begin operations after the emission of these terms that are not assigned to an EPS by the Secretary, shall fulfill with the third paragraph of the article 57 of the CFE Law. Generation activities will be carried on throughout EPS meanwhile the conditions provided in fraction I of the Transitory Eleventh of the CFE Law are not fulfilled.
CFE enterprises that perform Generation activities won’t be able to perform direct or indirectly neither Transmission, Distribution, Trading nor Primary Inputs Supply activities, except in the cases dully established.
Transmission (vertical separation).
Rendering the Public Electric Energy Transmission Service, in charge of CFE, will be executed through EPS specifically created for this purpose by the CFE, which might partner up or celebrate contracts with EPS, EF and individuals to perform, among other activities, financing, installation, maintenance, management, operation and extension of the necessary infrastructure to render the Public Electric Energy Transmission Service, in accordance to what is provided in the CFE Law and the LIE (Spanish acronym for “Electric Industry Law”).
CFE enterprises that perform Transmission activities won’t be able to perform direct or indirectly neither Generation, Distribution, Trading nor Primary Inputs Supply activities, except in the cases dully established.
Distribution (vertical separation).
Rendering the Public Electric Energy Distribution Service, in charge of CFE, will be executed through EPS specifically created for this purpose, which might partner up or celebrate contracts with EPS, EF and individuals to perform, among other activities, financing, installation, maintenance, management, operation, extension and other activities related with the development of the necessary infrastructure to render the Public Electric Energy Distribution Service, in accordance to what is provided in the CFE Law and the LIE (Spanish acronym for “Electric Industry Law”).
CFE’s EPS enterprises that perform Distribution activities won’t be able to perform direct or indirectly neither Generation, Transmission, Trading nor Primary Inputs Supply activities, except in the cases dully established.
Basic Supply (vertical separation).
Basic Supply activities will be executed through EPS, meanwhile the conditions provided in fraction I of the Transitory Fifteenth of the CFE Law are not fulfilled.
CFE enterprises that perform Basic Supply activities won’t be able to perform direct or indirectly neither Generation, Transmission, Distribution nor Trading activities different from the Basic Supply or Primary Inputs Supply, except in the cases dully established.