On April 16, 2026, the agreement of the Ministry of Energy (“SENER”) was published in the Official Gazette of the Federation (the “DOF”), by means of which the “Guidelines for the voluntary migration of independent power production permits” (the “Guidelines”) are issued.
Below is a summary of the most relevant aspects of the Guidelines and their implications for the holders of independent power production permits (“IPP Permits”) granted under the Public Electricity Service Law (“LSPEE”). 1. Purpose and scope of the Guidelines The purpose of the Guidelines is to regulate the migration procedure (the “Migration Procedure”) through which the holders of IPP Permits, granted under the LSPEE, may voluntarily migrate to the new generation regime provided for in the Electricity Sector Law (“LSE”), in order to ensure their operational continuity under the new regulatory framework. 2. Permit holders eligible to opt for migration The Guidelines establish that voluntary migration is aimed exclusively at holders of IPP Permits, provided that such permits are in force at the time of filing the migration application (the “Application”). In this regard, to initiate the Migration Procedure, the following main conditions must be met: The IPP Permit must be in force at the time of the Application. The Application must be filed before the start of the last year of validity of the IPP Permit. The migration must cover the entire capacity of the Power Plant, with no possibility of partial migrations. The Power Plant will continue operating under the IPP Permit and be governed by its terms until the conclusion of its validity. However, if at the end of its validity the holder has not carried out the Migration Procedure, the permit may not be migrated and its validity will conclude in accordance with its original terms. 3. Characteristics of the Migration Procedure In particular, the Migration Procedure has the following characteristics: The Application may be filed at any time prior to the expiration of the IPP permit, provided that it is before the last year of its validity, since a maximum period of up to one year must be considered for the granting of the permit under the LSE. The validity of the electricity generation permit granted as a result of the Migration Procedure may be for up to 15 years, in accordance with the modernization and, where applicable, rehabilitation program approved by the National Energy Commission (“CNE”). For the execution of the interconnection agreement, no additional studies are required, including interconnection studies, nor reinforcement works or payments associated with such works. The Migration Procedure does not allow increases in the installed capacity of the Power Plant. The electricity generation permits granted as a result of the Migration Procedure may not be extended. When a Power Plant holds more than one permit (e.g., an IPP Permit and a generation permit granted under the now-repealed Electricity Industry Law (“LIE”)), a single Application must be filed and the entirety of its installed capacity must be consolidated into a single permit. 4. Modalities of the Migration Procedure The Guidelines establish three modalities under which the Migration Procedure may be carried out, which determine the operation and commercialization scheme of the Power Plant under the LSE: Modality General description Relationship with CFE Participation in the MEM A. Generation with an Electricity Coverage Agreement The Power Plant obtains a generation permit linked to one or more electricity coverage agreements with CFE. CFE acquires at least 30% of the electricity and Associated Products. The electricity and Associated Products not committed to CFE may be commercialized in the MEM (e.g., 70%). B. Long-Term Production* The Power Plant migrates to a scheme in which all of its production is allocated to CFE through the execution of an agreement under the Long-Term Production scheme. CFE acquires 100% of the electricity and Associated Products. Does not participate in the MEM. C. Generation for the MEM The Power Plant obtains a permit to participate directly in the market. There is no contractual obligation with CFE. Full participation in the MEM. The migration modality must be expressly indicated in the Application and may not be modified during its validity. 5. Stages of the Migration Procedure The Application must be filed before the Electronic Filing Office (Oficialía de Partes Electrónica) of the CNE, in accordance with the format provided in the Sole Annex of the Guidelines and complying with the requirements established therein. For the modalities of A. Generation with an Electricity Coverage Agreement and B. Long-Term Production, the Migration Procedure comprises, in general terms, the following stages and time periods: (a) Filing of the Application: It is filed before the CNE. Once admitted, the CNE must notify the schedule of the Migration Procedure within the following 10 business days. (b) Working sessions and definition of conditions: Working sessions coordinated by the Ministry of Energy are held to define the applicable technical, operational, and contractual terms. This stage must conclude – where applicable – with the execution of the Migration Conditions Agreement . Such stage lasts a maximum period of 3 months, extendable on a single occasion for up to half of the original period. (c) Evaluation and resolution: The CNE analyzes the Application and, where applicable, resolves on the granting of the permit, in accordance with the schedule of the Migration Procedure. (d) Formalization of agreements and instruments: The corresponding agreements and legal instruments are executed, in accordance with the time periods established in the schedule. (e) Operational implementation: It includes the execution of the interconnection agreement, the update of the asset registry before CENACE, the enablement in the MEM, and the start of commercial operation (subject to compliance with the minimum operation tests performed by CENACE), and must be completed within a maximum period of 20 business days in accordance with the schedule of the Migration Procedure. It should be noted that the Guidelines allow the start of commercial operation even before completing the metering diagnosis and the Reduced POC Tests , granting a period of up to 24 months (counted from the start of the procedure) to demonstrate such compliance. Failure to comply with the stages or time periods of the Migration Procedure will result in its conclusion, without prejudice to the IPP permit remaining in force under its terms until its termination. It is important to mention that under modality B. Long-Term Production, the transfer of assets in favor of CFE provided for in article 79 of the Regulations to the LSE does not apply, unless the parties agree otherwise. On the other hand, in the case of modality C. Generation for the MEM, the Migration Procedure is carried out under a different scheme, consisting of: (a) The filing of the Application; (b) The conduct of the procedure for granting the generation permit in accordance with the Permit Provisions ; and (c) The notification of the corresponding resolution to the holder of the IPP Permit. In these cases, it is the permit holder's responsibility to comply with the requirements for participation in the MEM. 6. Transitional Regime The Guidelines entered into force on the day of their publication in the DOF. The transitional regime allows those who have previously applied for the migration of IPP Permits (under the LIE or LSE) and have ratified it before the CNE to file their application in accordance with these Guidelines. In addition, IPP permits expiring in 2027 are exempt from the ordinary time periods and may apply for migration at any time before their expiration. Finally, IPP permits that have already migrated to a generation permit under the LSE may, on a single occasion, participate in the Migration Procedure, for which purpose they must file their application within the twenty business days following the entry into force of the Guidelines, that is, no later than May 15, 2026. Taken together, the Migration Procedure establishes a structured path for the transition of Power Plants to the LSE regime, subject to compliance with the stages, requirements, and time periods provided for in the Guidelines. In this context, migration constitutes a relevant alternative for holders of IPP Permits, considering that such permits will not be extendable once their validity concludes. At Von Wobeser y Sierra, we remain at your disposal to advise you on the analysis and implementation of these Guidelines. Should you require additional information, please do not hesitate to contact our partners and associates who are experts in the field. Edmond Grieger, Partner: +52 (55) 5258-1048 | egrieger@vwys.com.mx Ariel Garfio, Partner: +52 (55) 5258-1007 | agarfio@vwys.com.mx Edmundo Berumen, Associate: +52 (55) 5258-1007 | eberumen@vwys.com.mx Roberto Flores, Associate: +52 (55) 5258-1048 | rflores@vwys.com.mx Mauricio Puebla, Associate: +52 (55) 5258-1007 | mpuebla@vwys.com.mx Héctor Sánchez, Associate: +52 (55) 5258-1048 | hsanchez@vwys.com.mx Regina González, Associate: +52 (55) 5258-1007 | rgonzalez@vwys.com.mx Arturo Hernández, Associate: +52 (55) 5258-1007 | ahernandez@vwys.com.mx
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