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President Sheinbaum signs secondary laws to make Pemex and CFE state-owned public companies

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Mexico Institute
Mexico City, Mexico ; May 3 2021: Pemex Mexican oil company logo
What Was Signed

On October 30, 2024 President Claudia Sheinbaum signed the secondary laws regarding energy to strengthen Pemex and Federal Electricity Commission (CFE), as strategic public companies for national development. 

  • Legal changes include: 
  • Allows Mexico’s Ministry of Energy (SENER) to retake the leadership of the planning of the Mexican energy sector 
  • That the CFE ensures the continuity, accessibility, and security of the electrical system 
  • Pemex can have mixed contacts for exploration and extraction 
  • Luz Elena González, head of SENER, stated that the reforms build on previous constitutional changes and reverse neoliberal policies from 1992 that, according to her, led to the privatization and weakening of the energy sector. 
  • Six new laws, including:  
    • Pemex Law (Ley de Pemex) 
  • CFE Law (Ley de CFE) 
  • Energy Planning and Transition Law (Ley de Planeación y Transición Energética) 
  • Electricity Sector Law  (Ley del Sector Eléctrico) 
  • Hydrocarbons Law (Ley de Hidrocarburos) 
  • National Energy Commission Law  (Ley de la Comisión Nacional de Energía) 
  • With these laws the concept of “energy justice” is introduced for the first time  
  • “energy justice” in Spanish “justicia energética” aims to reduce inequalities in access to and use of energy, these measures ensure that resources are allocated to prioritize the most vulnerable populations in the country. 
  • Creation of the National Energy Information System in SENER along with an Energy Declaration Council as the supreme coordinating body 
  • Elimination of subsidiaries within Pemex and CFE 
  • The reforms allow private investment in energy generation under mixed models but ensure that CFE maintains at least 54% of electricity production.  
  • PEMEX and CFE will not be classified as monopolies since they fulfill a social role. 
  • Private Participation within 6 schemes 
  • 3 for own consumption 
  • Increase residential distributed generation capacity from 0.5 to 0.7 MW without a permit 
  • Allow isolated self-consumption installations between 0.7 and 20 MW with a simplified permit process. 
  • 3 for energy generation 
  • long-term production contracts can be established for energy delivery to CFE, with the possibility that, in the end, the assets of these plants will be transferred to the Commission. 
  • Generation through mixed investment will also be allowed, ensuring that CFE maintains a 54% participation, sharing both risks and benefits. 
  • The role of electricity generator for sales and products in the wholesale electricity market is maintained. 
  • The reforms eliminate the CRE and CNH, transferring their functions to the new National Energy Commission, a decentralized body under Sener responsible for regulation, permits, and market oversight. 
  • The Secretary of Energy states that the reforms aim to strengthen national sovereignty, benefiting the Mexican people, the State, and productive sectors. They restore sector planning and make it binding to promote the energy transition. 

Mexico Institute

The Mexico Institute seeks to improve understanding, communication, and cooperation between Mexico and the United States by promoting original research, encouraging public discussion, and proposing policy options for enhancing the bilateral relationship. A binational Advisory Board, chaired by Luis Téllez and Earl Anthony Wayne, oversees the work of the Mexico Institute.   Read more

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