Energy

In accordance with article 27 of the Mexican Constitution, the State is the exclusive electric energy supplier because supplying electric energy is considered a public service. Nevertheless, over the time with the evolution of the economy and the technology, the electric energy sector has been forced to consider its working methods, thus opening its doors to private investment. The Mexican Government published on May 31st, 1993 the Public Electric Service Ruling Act. This Act allows the private sector to participate in some main activities in order to supply electric energy. These activities are not considered to be public service and include:

• Self supply to satisfy own needs.
• Supply electric energy to be used for an industrial process.
• Independent energy production to be sold to the Federal Electricity Commission.
• Small energy production to be sold to the Federal Electricity Commission.
• Import electricity for self supply and own usage.
• Export electricity produced by independent suppliers for small production.
• Supply electric energy used for emergencies.

Considering the liberalization, implementation of an adequate legal structure, a regulatory strategy and taking advantage of the government programs for the development of renewable energy, private investment has the opportunity to start important businesses in this sector.