ANNOUNCEMENT 11 Aug 2014In August 2014, the government of Mexico announced changed rules for foreign investors.
NUMBER OF INTERVENTIONS
Presidencia de La Rep?blica. (2014). Lei de la Industria El?ctrica. Available at http://cdn.reformas.gob.mx/Ley_de_la_Industria_Electrica_y_la_Ley_de_Energia_Geotermica.pdf
The Wall Street Journal. (2014). Mexico Hastens Energy Overhaul. Available at http://online.wsj.com/articles/mexico-hastens-energy-overhaul-1407803143
Clare Ribando Seelke, M. Angeles Villarreal, Michael Ratner, and Phillip Brown, 27 January 2015, "Mexico's Oil and Gas Sector: Background, Reform Efforts, and Implications for the United States" 'Congressional Research Service Report': https://www.fas.org/sgp/crs/row/R43313.pdf
On 11 August 2014, the Mexican president Enrique Peńa Nieto, signed a new law (DOF: 11/08/2014), partially opening the domestic electrical market for foreign companies. Art. 90 of the new law allows for partnerships between foreign and domestic companies.
However, Art. 91 of the law empowers the Ministry of Finance to introduce local content requirements for new projects. In case these requirements are not met (Art. 165 VIII) the law sets out the payment of a fine of 10% to 20% on the value of the purchased inputs.
This law is part of a reform of the Mexican energy sector which was introduced on constitutional level on 20 December 2013. Please, see also under Related Measures for the reforms on Mexico's hydrocarbon market.