ENERGY SECRETARY

DECREE issued by the Law of the Electrical Industry, the Law of Geothermal Energy and the addition and reform of various provisions of the Law of National Waters.

On the sidelines a seal with the National Shield, which reads: United Mexican States.-Presidency of the Republic.

ENRIQUE PEÑA NIETO, President of the United Mexican States, to its inhabitants known:

That the Honorable Congress of the Union, has served to address the following

DECREE

"THE GENERAL CONGRESS OF THE UNITED STATES MEXICANS, DECREES:

ISSUE OF ELECTRICITY INDUSTRY LAW, GEOTHERMAL ENERGY LAW AND VARIOUS PROVISIONS OF THE NATIONAL WATERS ACT ARE ADDED AND REFORMED

ARTICLE FIRST. The Law of the Electrical Industry is issued.

ELECTRICAL INDUSTRY LAW

TITLE FIRST

General Provisions

Chapter I

Of The Object and Finality of the Law. Definitions

Article 1.- This Law is a regulation of the fourth paragraph of Articles 25, 27, and the fourth paragraph of the Political Constitution of the United Mexican States and has the purpose of regulating the planning and control of the National Electrical System, the Public Service of Transmission and Distribution of Electrical Power and the other activities of the electrical industry. The provisions of this Law are of social interest and public order.

This law aims to promote the sustainable development of the electricity industry and to ensure its continuous, efficient and safe operation for the benefit of users, as well as the compliance with public and universal service obligations, Clean Energy and pollutant emission reduction obligations.

Article 2.- The electrical industry comprises the activities of generation, transmission, distribution and marketing of electrical energy, planning and control of the system Electric National, as well as the operation of the Wholesale Electric Market. The electricity sector comprises the electricity industry and the supply of primary inputs for the electricity industry. The activities of the electricity industry are in the public interest.

The planning and control of the National Electrical System, as well as the Public Power Transmission and Distribution Service, are strategic areas. In these matters, the State shall maintain its ownership, without prejudice to the possibility of concluding contracts with individuals in the terms of this Law. The Basic Supply is a priority activity for national development.

Article 3.- For the purposes of this Act, it is understood by:

I.               Electrical Market bases: General administrative provisions containing the principles of the design and operation of the Wholesale Electrical Market, including the auctions referred to in this Law;

II.              Quality: Degree in which the characteristics and conditions of the Electrical Supply comply with the technical requirements determined by the CRE in order to ensure the correct performance and integrity of the equipment and devices of the Users Final;

III.             CENACE: National Energy Control Center;

IV.            Power Plant: Facilities and equipment that, in a given site, allow to generate electrical power and Associated Products;

V.             Legada Power Plant: Electrical Central which, at the entry into force of this Law, is not included in a permit to generate electric power under the mode of self-supply, cogeneration, small production, production Independent or continuous own uses, and:

a) It is owned by the agencies, entities or companies of the State and is in a position to operation, or

b) Cuya construction and delivery has been included in the Federation's Eglues Budget in the form of direct investment;

VI.            Legada External Central: Electrical Central which, at the entry into force of this Law:

a) It is included in a permit to generate electrical power under the independent production mode, or

b) Cuya construction and operation has been included in the Federation's Eglues Budget in the form of conditional investment;

VII.           Loading Center: Facilities and equipment that, on a given site, allow an End User to receive the Electrical Supply. The Load Centers will be determined at the point of measurement of the energy supplied;

VIII.          Clean Energy Certificate: Title issued by the CRE that credits the production of a certain amount of electrical energy from Clean Energy and that serves to meet the requirements associated with the consumption of the Loading;

IX.            Marketer: Holder of a Market Participant contract that aims to perform marketing activities;

X.             Reliability: Ability of the National Electrical System to meet the electrical demand of the End Users under conditions of sufficiency and Security of Dispatch, in accordance with the respective criteria that the CRE issues;

XI.            Continuity: Satisfaction of the electrical demand of the End Users with a frequency and duration of interruptions less than that set out in the respective criteria that the CRE issues;

XII.           Electrical Coverage Contract: Agreement between Market Participants by which the purchase of electrical energy or Associated Products is required in a future and determined time or date, or to make payments based on the prices of the same;

XIII.          Legacy Interconnection Contract: Contract for interconnection or contract of commitment for the sale of electricity for a small producer concluded or concluded under the conditions prevailing before the entry into force of the This Law;

XIV.          Legacy Contract for Basic Supply: Electrical Coverage Contract that Basic Services Providers will have the option to celebrate, with prices based on respective costs and contracts, that span electric power and Associated Products of Legacy Electrical Central and Legacy External Central.

XV.           National Electrical System Operational Control: The issue of instructions relating to:

a) The allocation and dispatch of the Electrical and Control Demand Central (s);

b) The operation of the National Transmission Network that corresponds to the Wholesale Electrical Market, and

c) The operation of the General Distribution Networks corresponding to the Wholesale Electrical Market;

XVI.          CRE: Energy Regulatory Commission;

XVII.         Demand Controllable: Demand for electrical power that End Users or their representatives offer to reduce according to Market Rules;

XVIII.        Guaranteed Controllable Demand: Controllable demand that the End Users or their representatives have committed to offer in the Wholesale Electrical Market in a given period, so that such demand is used to meet the the power requirements referred to in Article 54 of this Law;

XIX.          Transmission Financial Rights: The right and the correlative obligation to receive or pay an amount based on the difference resulting from the local marginal price congestion components on two nodes of the System National Electric in a given period, in the terms of the Market Rules. For the purposes of documenting the Transmission Financial Rights, the account statements issued by CENACE shall be executive titles;

XX.           Market Operating Provisions: Operational bases, criteria, guidelines, guidelines, manuals, procedures and other provisions issued by CENACE, in which the operational processes of the Electricity Market will be defined Wholesale, in accordance with the Electrical Market Bases;

XXI.          Distributor: The production agencies or companies of the State or its subsidiary production companies, which provide the Public Power Distribution Service;

XXII.         Energy Clean: Those energy sources and electricity generation processes whose emissions or residues, where the emissions or waste, do not exceed the thresholds laid down in the regulatory provisions for which they are issued. Among the Clean Energy are considered the following:

a) The wind;

b) Solar radiation, in all its forms;

c) Ocean energy in its various forms: tidal waves, tidal waves, waves, currents marine and salt concentration gradient;

d) Heat from geothermal fields;

e) Bioenergy to be determined by the Law on the Promotion and Development of Bioenergy;

f) The energy generated by harnessing the calorific power of methane and other associated gases in the waste disposal sites, livestock farms and waste water treatment plants, among others;

g) The energy generated by the use of hydrogen by burning or using it in cells fuel, provided that the minimum efficiency established by the CRE and the emission criteria established by the Secretariat for the Environment and Natural Resources in its life cycle is met;

h) Power from hydroelectric power plants;

i) Nuclear power;

j) Energy generated from agricultural shearing or solid urban waste processing products (as gasification or molecular plasma), when such processing does not generate dioxins and furans or other emissions that may affect health or the environment and complies with the official Mexican standards that the Secretary of the Middle Environment and Natural Resources;

k) Energy generated by efficient cogeneration plants in terms of the efficiency criteria issued by the CRE and emissions established by the Secretariat for the Environment and Natural Resources;

l) The energy generated by sugar mills that meet the efficiency criteria set by the CRE and emissions established by the Secretariat of the Environment and Natural Resources;

m) Power generated by thermal power stations with geologic capture and storage processes Carbon dioxide bioequestro having an equal or higher efficiency in terms of kWh-generated per tonne of carbon dioxide equivalent emitted to the atmosphere at the minimum efficiency established by the CRE and the emission criteria established by the Secretariat of the Environment and Natural Resources;

n) Technologies considered low carbon emissions according to international standards, and

o) Other technologies to be determined by the Secretariat and the Secretariat of Environment and Natural Resources, with basis in parameters and standards for energy and water efficiency, emissions into the atmosphere and generation of waste, in a direct, indirect or life cycle;

XXIII.        Generation Distributed: Generation of electrical power that meets the following characteristics:

a) It is performed by an Exempt Generator in the terms of this Act, and

b) It is done on an Electrical Central that is interconnected to a distribution circuit that contain a high concentration of Load Centers, in the terms of the Market Rules;

XXIV.       Generator: Holder of one or more permits to generate electricity in Electrical Central, or, holder of a Market Participant contract that represents in the Wholesale Electrical Market to such power plants or, with the The authorisation of the CRE, to the Electrical Central (s) located abroad;

XXV.        Exempt Generator: Owner or holder of one or more Electrical Power Stations that do not require or have permission to generate electrical power in terms of this Law;

XXVI.       Recoverable Income: Costs that Basic Suppliers will be entitled to recover for the provision of Basic Supply and which include electrical power, Associated Products, Electrical Coverage Contracts and own operation;

XXVII.      Wholesale Electrical Market: Market operated by CENACE in which Market Participants will be able to perform the transactions outlined in Article 96 of this Law;

XXVIII.     Market Participant: Person who celebrates the respective contract with CENACE in Generator, Marketer, Supplier, Non-Supplier Marketer, or Qualified User mode;

XXIX.       Prudent Practice: The adoption of industry best practices related to costs, investments, operations or transactions, which are carried out in terms of efficiency and incorporating the best commercial terms available at the time of their realization;

XXX.        Local Marginal Price: The price of electrical energy in a given node of the National Electrical System for a defined period, calculated in accordance with the Market Rules and applicable to electrical energy transactions made in the Wholesale Electrical Market;

XXXI.       Products Associates: Products related to the operation and development of the electrical industry necessary for the efficiency, quality, reliability, continuity, safety and sustainability of the National Electrical System, among which are: power, Services, Certificates of Clean Energy, Financial Rights of Transmission, transmission and distribution services and Operating Control of the National Electrical System, as well as the other products and rights of collection that define the Market Rules;

XXXII.      National Electrical System Development Program: Document issued by the Secretariat that contains the National Electrical System planning, and which brings together the relevant elements of the indicative programs for installation and retirement of Electrical Central and the programmes for the extension and modernisation of the National Transmission Network and the General Network of Distribution;

XXXIII.     Network Electrical: System consisting of lines, substations and equipment for transformation, compensation, protection, switching, measurement, monitoring, communication and operation, among others, which allow the transmission and distribution of electrical energy;

XXXIV.    Intelligent Electrical Network: Electrical Network that integrates advanced measurement, monitoring, communication and operation technologies, among others, in order to improve efficiency, reliability, Quality or safety of the National Electrical System;

XXXV.     National Transmission Network: System integrated by the set of Electrical Networks that are used to transport electrical energy to the General Distribution Networks and the general public, as well as the interconnections to the systems Foreign electric power to be determined by the Secretariat;

XXXVI.    General Distribution Networks: Electrical Networks that are used to distribute electrical power to the general public;

XXXVII.   Particular Networks: Electrical Networks that are not part of the National Transmission Network or General Distribution Networks;

XXXVIII. Market Rules: Conjointly, the Electrical Market Bases and the Market Operating Provisions, which govern the Wholesale Electrical Market;

XXXIX.    Objective Return: The expected rate of return for State investments in the electrical industry, used for the purposes of the provisions of Articles 31, 148, 149 and 150 of this Law;

XL.           Secretariat: Energy Secretariat;

XLI.          Dispatch Security: An operational condition in which the Quality and Continuity of the operation of the National Electrical System can be maintained, in the short term, against the failure of an element or multiple elements thereof, according to the respective criteria to be issued by the CRE;

XLII.         Public Power Transmission and Distribution Service: The activities necessary to carry out the transmission and distribution of electrical energy in the National Transmission Network and in the General Networks of Distribution;

XLIII.        Related Services: The services linked to the operation of the National Electrical System and which are necessary to guarantee its Quality, Reliability, Continuity and security, among which may be included: the operational reserves, rolling stock, frequency regulation, voltage regulation and emergency boot, among others, which are defined in the Market Rules;

XLIV.       National Electrical System: The system integrated by:

a) The National Transmission Network;

b) General Distribution Networks;

c) Electrical Power Stations that deliver electrical power to the National Transmission Network or Networks Distribution Generals;

d) CENACE equipment and facilities used to perform System Operational Control National Electrical, and

e) Other items to be determined by the Secretariat;

XLV.        Supplier: The holder of a permit to offer the Electrical Supply in the Basic Services Provider, Qualified Services Provider, or Last Resource Provider mode, and which can represent in the Wholesale Electrical Market to Exempt Generators;

XLVI.       Basic Services Provider: Permissioner that offers Basic Supply to Basic Supply Users and represents in the Wholesale Electrical Market to the Exempt Generators who request it;

XLVII.      Qualified Services Supplier: Permit offering Qualified Supply to Qualified Users and may represent in the Wholesale Electrical Market to Exempt Generators in a competition regime;

XLVIII.     Last Resource Supplier: Permissioner that provides the Last Resource Supply to Qualified Users and represents in the Wholesale Electrical Market to Exempt Generators that require it;

XLIX.       Basic Supply: The Electrical Supply that is provided under tariff regulation to any person who requests it not to be a Qualified User;

L.              Qualified Supply: The Electrical Supply that is provided in a competitive regime to Qualified Users;

LI.             Last Resource Supply: The Electrical Supply that is provided at maximum prices to Qualified Users, for limited time, in order to maintain the Continuity of Service when a Service Provider Qualified to stop providing Electrical Supply;

LII.            Electrical Supply: A set of products and services required to meet the demand and power consumption of End-Users, regulated when applicable by the CRE, and comprising:

a) Representation of End Users in the Wholesale Electrical Market;

b) Acquisition of electrical energy and associated products, as well as the conclusion of Electrical Coverage, to meet such demand and consumption;

c) Power power disposal for delivery to the End User Load Centers, and

d) Billing, collection and attention to End Users;

LIII.           Tariffs Regulated: The contracts established by the CRE for the services of transmission, distribution, operation of the Basic Services Providers, operation of the CENACE and Services not included in the Electricity Market Wholesaler;

LIV.          Carrier: The State's production agencies or companies, or their subsidiary production companies, which provide the Public Power Transmission Service;

LV.           Qualified User: End User who has registered with the CRE to acquire the Electrical Supply as a Market Participant or a Qualified Services Provider;

LVI.          Basic Provisioning User: End User that acquires Basic Provisioning, and

LVII.         User Final: A physical or moral person who acquires, for his or her own consumption or for consumption within his/her facilities, the Electrical Supply in its Cargo Centers, as a Market Participant or through a Supplier.

Article 4.- Electrical Supply is a service of public interest. The generation and marketing of electricity are services that are provided in a free competition regime.

The National Electrical System's activities of generation, transmission, distribution, marketing and operational control are of public utility and will be subject to public and universal service in terms of this Law and applicable provisions, in order to achieve compliance with the objectives set forth in this legal order. Are considered public and universal service obligations the following:

I.               Grant open access to the National Transmission Network and General Distribution Networks in non-unduly discriminatory terms;

II.              Offer and deliver the Electrical Supply to anyone who requests it, when this is technically feasible, in conditions of efficiency, Quality, Reliability, Continuity, Security and Sustainability;

III.             Comply with the provisions of social impact and sustainable development laid down in Chapter II of Title IV of this Law;

IV.            Contribute to the Universal Electrical Service Fund, as outlined in Article 114 of this Law;

V.             Comply with the Clean Energy and Pollutant Emission Reduction obligations that are set out in the applicable provisions, and

VI.            Offer electrical power, power and Services to the Wholesale Electrical Market based on production costs according to the Market Rules and deliver such products to the National Electrical System when technically feasible, subject to CENACE instructions.

Article 5.- The Federal Government, the Generators, the Carriers, the Distributors, the Dealers, the Qualified Users of the Market and the CENACE, each one in the field of its responsibilities and responsibilities, shall implement the acts necessary to maintain the integrity and efficient functioning of the National Electrical System.

As not provided for by this Law, the acts of the electrical industry are considered to be commercial, so they will be governed by the Commercial Code and, in an extra way, by the provisions of the Federal Civil Code.

Article 6.- The State shall establish and implement the policy, regulation and surveillance of the electrical industry through the Secretariat and the CRE, in the field of their respective competencies, with the following objectives:

I.               Ensure the efficiency, quality, reliability, continuity and security of the National Electrical System;

II.              Promote the activities of the electrical industry to be carried out under sustainability criteria;

III.             To boost investment and competition, where this is feasible, in the electricity industry;

IV.            Fostering the efficient expansion of the electricity industry, respecting the human rights of communities and peoples;

V.             Encourage the diversification of the power generation matrix as well as national energy security;

VI.            Support the universalization of Electrical Supply, and

VII.           Protect the interests of End Users.

Article 7.- The activities of the electrical industry are of federal jurisdiction. The administrative and judicial authorities shall provide the necessary information to ensure that such activities are not interrupted.

Article 8.- The generation, transmission, distribution, marketing and supply of primary inputs for the electrical industry will be independently performed between They shall be subject to strict legal separation conditions; in the same way, the supply of basic services and other modes of marketing shall be separated.

Without prejudice to the powers of the Federal Economic Competition Commission in the field of its powers, the Secretariat shall establish the terms of strict separation. legal requirements to encourage open access and efficient operation of the electrical sector and monitor compliance.

Generators and Marketers belonging to the same economic group will be able to do transactions with each other, subject to the rules that the CRE will issue.

Without prejudice to the legal separation referred to in this Article, the CRE may establish the accounting, operational or functional separation of the members of the electrical industry, when, in his judgment, is necessary for the regulation of such an industry.

Article 9.- In addition to that referred to in the first paragraph of the previous article, the Secretariat shall be empowered to order the strict legal separation of a member of the electrical industry in the following cases:

I.               Discrimination against persons requesting access to the National Transmission Network, the General Distribution Networks or other goods and services necessary for the activities of the electrical industry;

II.              Failure to comply with the connection obligations of the charging or interconnection centres of the electrical power stations;

III.             Failure to comply with the obligations to offer the Wholesale Electricity Market the totality of the capacities available in the Electrical Power Stations at cost-based prices and the full capacity available in the Demand Controllable Controllable according to Market Rules;

IV.            Non-compliance with transparency obligations, or accounting information in each industry segment;

V.             Transfer of resources between industry segments in contravention of applicable provisions;

VI.            Any action or omission to evade or breach the obligations of the tariff regulation, or

VII.           The other referred to in the laws, regulations or administrative resolutions of the Secretariat.

When, in your opinion, legal separation is insufficient to encourage open access or efficient operation of the electricity sector, the Secretariat will order the removal of assets, rights, social parts or actions.

Article 10.- The misuse and transmission of inside information by the personnel of the authorities, the Carriers, the Distributors and the CENACE or the any person who is related to them. The CRE shall establish the respective criteria by means of general administrative provisions.

Chapter II

From Authorities

Article 11.- The Secretariat is empowered to:

I.               Establish, drive and coordinate the country's energy policy in the field of electrical energy;

II.              Formulate the sectoral programs for the development of the electricity industry in accordance with the National Development Plan;

III.             Lead the planning process and development of the National Electrical System Development Program;

IV.            Develop and publish annually a detailed report to enable knowledge of the performance and trends of the national electricity industry;

V.             Ensure coordination with regulatory bodies in the electrical industry, other relevant authorities for the electrical industry, CENACE and the National Natural Gas Control Centre;

VI.            Constitute, in coordination with the CRE, an evaluation committee that will review the performance of CENACE and the Wholesale Electrical Market;

VII.           Establish and monitor the terms for legal separation of members of the electrical industry and the disincorporation of assets, rights, social parts or shares;

VIII.          Carry out the consultation procedures, and resolve social impact assessments for infrastructure projects related to the electrical industry;

IX.            Establish requirements for the acquisition of Clean Energy Certificates;

X.             Set the criteria for the granting of Clean Energy Certificates;

XI.            Determine, with the Secretariat of Environment and Natural Resources, other technologies that are considered Clean Energy;

XII.           Develop the indicative programs for the installation and removal of Electrical Central to meet the needs of the country, incorporating the requirements referred to in the IX fraction of this article;

XIII.          Prepare and coordinate the implementation of the strategic infrastructure projects necessary to comply with national energy policy;

XIV.          Issue opinion on Market Rules;

XV.           Issue opinion on the operation of the Wholesale Electrical Market;

XVI.          With the view of the CRE, establish the mechanisms, terms, deadlines, criteria, bases and methodologies under which the Basic Services Providers will have the option of holding the Electrical Coverage Contracts based on the costs of the Legated Electrical Power Stations and the contracts of the Legacy External Central;

XVII.         Set criteria for the delimitation of Electrical Central, Transmission Networks, Distribution Networks, Cargo Centers and the National Electrical System, and to classify electrical installations into categories corresponding;

XVIII.        Encourage the granting of credits and other schemes for the financing of Distributed Clean Generation Electrical Power (s);

XIX.          Establish coverage obligations for Electrical Supply in rural communities and marginalized urban areas and implement the mechanisms to direct economic resources to this end;

XX.           Authorize the programs of expansion and modernization of the National Transmission Network and of the General Distribution Networks that are submitted by CENACE or the Distributors and request changes to them, listening to the opinion that, if applicable, issue the CRE;

XXI.          Instruct the Transporters and Distributors to implement the projects contained in the programs for the extension and modernization of the National Transmission Network and the General Distribution Networks;

XXII.         To determine the formation of associations or the conclusion of contracts and to hold the call of individuals in order to conclude such associations or contracts, in the cases indicated in Article 31 of this Law;

XXIII.        Establish the minimum percentages and other conditions of national content in the supplier of the contracts referred to in Article 30 of this Law, according to the nature of the procurement, the tariff regulation and according to international treaties of which Mexico is a party;

XXIV.       Form the partnerships or conclude the contracts necessary to provide the Public Power Transmission and Distribution Service;

XXV.        Determine and periodically adjust the levels of consumption or total demand and consumption or demand per Load Center that are required for a End User to register as a Qualified User, and to issue the provisions corresponding;

XXVI.       Determine the conditions for the transfer of the rights and obligations of the Basic Services Providers when they fail to meet their payment or guarantee obligations vis-à-vis CENACE;

XXVII.      Monitor the application of the methodologies to assess the profitability and returns on capital reported by the productive enterprises of the State and its subsidiary productive companies of the electrical industry;

XXVIII.     Provide for the participation of social witnesses in the negotiation processes related to the acquisition, use, enjoyment, servitude, occupation or superficial affectation of the buildings, premises, land, property or rights necessary to carry out the activities of the electricity industry, and to conclude collaboration agreements in relation to the same;

XXIX.       Propose to the Federal Executive the constitution of legal easements;

XXX.        Promote the temporary, partial or total occupation, or the limitation of the rights of ownership of the real estate that are necessary to carry out the activities of the electrical industry;

XXXI.       Administer the federally owned buildings to which this Law refers, the administration of which does not correspond to the CRE, the productive enterprises of the State, its subsidiary production companies or the CENACE;

XXXII.      Propose to the head of the Federal Executive the intervention or requisition of the electrical installations in the cases provided for in this Law and to participate in the corresponding procedure, in the terms of the Decree that the effect is issued;

XXXIII.     Require and facilitate access to the information indicated in this Law and other information that, in the opinion of the same Secretariat, allows to know the performance and trends of the national electricity industry;

XXXIV.    Authorize CENACE to conclude agreements with the bodies or authorities that are responsible for operating the markets and electrical systems abroad;

XXXV.     Authorize the terms and conventions, as well as the formation of partnerships or conclusion of contracts, as referred to in Chapter VI of Title II of this Law;

XXXVI.    Regular, monitor and execute the standardization and standardization process for the security of the End Users ' facilities;

XXXVII.   Define the terms for approval of the verification units referred to in Article 33 (V) of this Law and issue the corresponding formats;

XXXVIII. Verify compliance with this Law, its Regulations and other applicable administrative provisions, order and carry out verification visits, require the submission of information and reports, and subpoena the members of the In order to monitor and monitor, in the area of its competence, compliance with the applicable legal provisions;

XXXIX.    Investigate, identify and report to persons who carry out acts or omissions that have as their object or direct or indirect consequence influence the decision-making of a public servant, staff or directors of companies State production in the electricity industry for direct or indirect personal economic benefit, in the field of its powers;

XL.           To issue and monitor compliance with administrative provisions of a general nature in relation to the privileges conferred upon it by this Law;

XLI.          Impose the penalties that correspond in terms of the provisions of this Law, its Regulations and other legal provisions;

XLII.         Other than this and other legal systems trust you, and

XLIII.        Interpret for administrative purposes this Law in the field of its faculties.

Article 12.- The CRE is entitled to:

I.               Grant the permissions referred to in this Law and resolve its modification, revocation, assignment, extension or termination;

II.              Determine the methodologies, criteria, and bases to determine and update the applicable consideration for Exempt Generators and Basic Supply Users with Controlable Demand when they sell their production or reduce demand to a Basic Services Provider;

III.             Establish the general conditions for the provision of the Public Power Transmission and Distribution Service, as well as the general conditions for the provision of Electrical Supply, and to resolve modification;

IV.            To issue and apply the tariff regulation to be subject to the transmission, distribution, operation of the Basic Services Suppliers, the operation of CENACE and the Conexo Services not included in the Electricity Market Wholesale, as well as the final Basic Supply rates in terms of the provisions of Article 138 and 139 of this Law;

V.             Issue and apply the methodologies to determine and adjust the maximum rates of the Last Resource Suppliers and the maximum prices of the Last Resource Supply, and determine the other conditions for such Supply;

VI.            Establish and monitor the terms for the accounting, operational and functional separation of electrical industry members;

VII.           Set the accounting guidelines to be observed in the transmission, distribution, Basic Supply and Supply of Last Resource activities, as well as in the CENACE operation, for the purposes of tariff regulation;

VIII.          Issue Electrical Market Bases;

IX.            Establish the mechanisms for the authorization, review, adjustment and updating of the Market Operating Provisions;

X.             Define the terms for cost-based offers and monitor compliance with the obligations set out in Article 104 of this Act and in the Market Rules;

XI.            Monitor the operation of the Wholesale Electrical Market and CENACE determinations to ensure the efficient operation of the Wholesale Electrical Market and compliance with the Market Rules;

XII.           Instruct the corrections to be made to the registered parameters of the Electricity Central and Controllable Controllable Demand, as well as to the offers based on them, and instruct the CENACE to rectify the billing corresponding;

XIII.          To issue an opinion on the mechanisms, terms, deadlines, criteria, bases and methodologies under which the Basic Services Providers will have the option of holding the Electric Coverage Contracts based on the cost of Legacy Electrical Power Stations and the contracts of Legacy External Central and monitoring their compliance;

XIV.          Authorize the models of contract that CENACE holds with the Market Participants, as well as the models of agreement that are required between CENACE, the Carriers and the Distributors;

XV.           Issue models for the interconnection of Electrical Central, Connection of Load Centers, purchase and sale by the Exempt Generators, purchase and sale by the Basic Supply Users with Controlable Demand and the others require;

XVI.          Grant the Clean Energy Certificates;

XVII.         Issue the regulation to validate the ownership of the Clean Energy Certificates;

XVIII.        Verify compliance with requirements regarding Clean Energy Certificates;

XIX.          Issue the efficiency criteria used in the definition of Clean Energy;

XX.           Issue the rules, directives, methodologies and other provisions of an administrative nature that regulate and promote the generation of electric energy from Clean Energy, in accordance with the provisions of this Law, to the energy policy established by the Secretariat;

XXI.          Set the requirements to be met by the Suppliers and the Qualified Users of the Market to acquire power to provide them with the Load Centers they represent, as well as the requirements of Electrical Coverage Contracts that the Suppliers must celebrate, and verify their compliance;

XXII.         Authorize CENACE to conduct auctions in order to acquire power when deemed necessary to ensure the reliability of the National Electrical System, to determine the allocation of costs resulting from such auctions and to issue protocols for CENACE to manage power procurement in emergency cases;

XXIII.        To issue an opinion on the programs for the extension and modernization of the National Transmission Network and the General Distribution Networks that are submitted by CENACE or the Distributors and request changes to them;

XXIV.       Authorize the general technical specifications proposed by the CENACE, required for the interconnection of new electrical power stations and the connection of new loading centres, and to authorize charges for carrying out studies of the specific characteristics of the required infrastructure and for the other components of the interconnection and connection process;

XXV.        Resolve disputes related to interconnections and connections that are not made within the established time frame as well as the denial of supply cases;

XXVI.       Issue the terms and conditions and issue the calculation methodologies, criteria and bases to determine and update the amount of the contributions that the stakeholders will have to make for the construction of works, extensions and transmission and distribution modifications when costs are not recovered through tariff regulation, and approve the corresponding convention models;

XXVII.      Issue the rules to which transactions between the Generators and their affiliated marketers will be pinned;

XXVIII.     Authorize the import of electrical power from Electrical Central (s) connected exclusively to the National Electrical System, as well as the import and export in isolated supply mode;

XXIX.       Bring the Qualified User registry and verify that the End Users are required to do so;

XXX.        Take the Marketers record that do not require permission;

XXXI.       Establish Recoverable Revenue and efficient collection targets for Basic Services Providers;

XXXII.      Establish the mechanisms for the allocation of Qualified Users and Exempt Generators to the Last Resource Providers when required in terms of this Act;

XXXIII.     To resolve disputes arising between CENACE and other members of the electrical industry, once the routes established in the Market Rules are exhausted;

XXXIV.    To issue the necessary provisions so that, in return for fair remuneration, access to public service providers in other industries using the facilities and rights of the National Electrical System is permitted; and verify compliance with this obligation;

XXXV.     Issue the criteria referred to in the second paragraph of Article 34 of this Law;

XXXVI.    Upon request of the owner and the non-objection of the CENACE, resolve on the assignment of the Particular Networks to the Carriers or the Distributors;

XXXVII.   To issue and apply the necessary regulation in terms of efficiency, quality, reliability, continuity, security and sustainability of the National Electrical System;

XXXVIII. Issue the rules, directives and other administrative provisions relating to Intelligent Electrical Networks and Distributed Generation, taking into account the policy established by the Secretariat;

XXXIX.    Regular, monitor and execute the process of standardization and standardization in the field of the National Electrical System;

XL.           Define the terms for approval of the verification units and the inspection units referred to in Article 33 (IV) of this Law and issue the corresponding formats;

XLI.          Encourage the training of companies and their staff, as well as independent professionals and technicians, for the installation of Distributed Clean Generation Electrical Power Stations;

XLII.         Dictate or execute the necessary measures to protect the public's interests in relation to the Quality, Reliability, Continuity and Security of Electrical Supply, and to request other authorities, in the field of their competence, to application of additional or necessary security measures;

XLIII.        Receive a copy of the documents in which the agreements reached by negotiation or the measures decreed by the Federal Executive or the competent courts are established, in accordance with Chapter VIII of Title II of this Law;

XLIV.       Establish and monitor compliance with the rules on misuse and the transmission of inside information by the personnel of the authorities, the Carriers, the Distributors and the CENACE and the persons who have relationship to them;

XLV.        Establish the modalities and minimum information to be made public by the members of the electrical industry;

XLVI.       Require and facilitate access to the information indicated in this Law and other information that, in the opinion of the same CRE, allows to know the performance and trends of the national electricity industry;

XLVII.      Verify compliance with this Law, its Regulations and other applicable administrative provisions, order and carry out verification visits, require the submission of information and subpoena the members of the industry in order to monitor and monitor, in the field of its competence, compliance with the applicable legal provisions;

XLVIII.     Investigate, identify and report to persons who carry out acts or omissions that have as their object or direct or indirect consequence influence the decision-making of a public servant, staff or directors of companies State production in the electricity industry for direct or indirect personal economic benefit, in the field of its powers;

XLIX.       To issue and monitor compliance with administrative provisions of a general nature in relation to the privileges conferred upon it by this Law;

L.              Impose the penalties that correspond in terms of the provisions of this Law, its Regulations and other legal provisions;

LI.             Coordinate with the Federal Office of the Consumer for the attention of the complaints of the physical and moral persons of the Basic Supply and included in Article 2 of the Federal Law on Consumer Protection and to attend directly the complaints of the natural and moral persons of the service whose complaints are not brought before the Federal Office of the Consumer or in which that authority cannot act as an arbitrator, in accordance with the provisions of Articles 99 and 117 of that law;

LII.            Other than this and other legal systems trust you, and

LIII.           Interpret for administrative purposes this Law in the field of its faculties.

TITLE SECOND

Of The Electrical Industry

Chapter I

National Electrical System Planning and Control

Article 13.- With the objective of promoting the installation of sufficient resources to meet the demand in the National Electrical System and meet the objectives of Energias Clean, the Secretariat will develop indicative programs for the installation and withdrawal of Electrical Central, whose relevant aspects will be incorporated into the National Electrical System Development Program.

The Secretariat may prepare and coordinate the implementation of the strategic infrastructure projects necessary to comply with national energy policy.

Article 14.- The extension and modernization of the National Transmission Network and the General Distribution Networks will be carried out in accordance with the programs authorized by the Secretary, listening to the opinion that, if any, issues the CRE.

The expansion and modernization programs for the National Transmission Network and the elements of the General Distribution Networks that correspond to the Wholesale Electrical Market will be authorized by the Secretariat on a proposal from CENACE, listening to the opinion that, if necessary, issue the CRE. The corresponding Carriers and Distributors may participate in the development of these programs.

The expansion and modernization programs for the elements of the General Distribution Networks that do not correspond to the Wholesale Electrical Market will be authorized by the Secretariat to proposal of the Distributors concerned, listening to the opinion that, if necessary, issue the CRE.

The National Electricity System Development Program will be issued by the Secretariat and will incorporate the relevant aspects of the expansion and modernization programs.

Such programs will be developed under the following principles:

I.               Seek the operation of the National Electrical System in conditions of efficiency, quality, reliability, continuity, security and sustainability;

II.              They will include the elements of the Intelligent Electrical Network that reduce the total cost of provision of Electrical Supply or raise the efficiency, reliability, quality or safety of the National Electrical System in an economic way viable;

III.             They will coordinate with programs promoted by the Universal Electrical Service Fund, and

IV.            They will incorporate mechanisms to know the opinion of the Market Participants and those interested in developing electrical infrastructure projects.

Article 15.- The State will exercise the Operational Control of the National Electrical System through CENACE, which will determine the elements of the National Transmission Network and the Networks. General Distribution and the operations of the same ones that correspond to the Wholesale Electrical Market; the other operations of these networks may be carried out by the Carriers or Distributors, subject to the coordination of the CENACE. The CENACE will determine the allocation of responsibilities and coordination procedures with the Carriers and Distributors in order to exercise the Operational Control of the National Electrical System.

For the best performance of its object, CENACE will be able to form partnerships or to conclude contracts with individuals to provide services auxiliary to the operation of the Electricity Market Wholesaler. The respective partnerships and contracts shall be subject to the following conditions:

I.               The individuals with whom the CENACE contrate will be jointly and severally responsible for the provision of the corresponding services, in the area of the object of their participation, and

II.              In the form of levies on the rights derived from associations and contracts, it shall be stated that, under no circumstances, the goods in the public domain which are the subject of the same shall be guaranteed.

Article 16.- The instructions that CENACE issues in the exercise of the National Electrical System Operational Control are mandatory for all members of the industry. power.

Chapter II

Power Generation

Article 17.- Electrical Central with capacity greater than or equal to 0.5 MW and Electrical Central (s) of any size represented by a Generator in the Electrical Market Wholesaler requires permission granted by the CRE to generate electric power in the national territory. Authorization granted by the CRE is required to import electrical energy from an electrical station located abroad and exclusively connected to the National Electrical System. Power plants of any capacity that are intended solely for their own use in emergencies or interruptions in Electrical Supply do not require permission.

Permits and their representatives are obligated to comply with the Market Rules. The permissioner or a person other than him may fully or partially represent each Power Plant in the Wholesale Electrical Market, in the terms permitted by the Market Rules.

Article 18.- The Generators representing Electrical Central interconnected to the National Electrical System shall:

I.               Celebrate the respective interconnection contracts, issued by the CRE;

II.              Operate its Electrical Power Stations in compliance with the CENACE instructions;

III.             Hold the maintenance of your Electrical Central to the coordination and instructions of the CENACE, and

IV.            Notify CENACE of scheduled withdrawals from its Electrical Central.

Article 19.- In relation to the production of its own Electrical Power Plants, the Generators may perform the marketing activities referred to in Article 45 of the This Law, with the exception of the provision of Electrical Supply. They shall not apply to such activities the strict legal separation or the rules referred to in Article 8 of this Law, and shall be subject to the applicable legal regime of the relevant Electrical Central.

Article 20.- Exempt generators may only sell their electrical energy and Associated Products through a Supplier or dedicate their production to the isolated supply.

Article 21.- Exempt Generators will be able to sell electrical power and Associated Products through a Basic Services Provider. For these cases, the CRE will issue the contract models and calculation methodologies, criteria and bases to determine and update the applicable consideration, which will reflect the economic value that produces the Supplier. Exempt Generators will also be able to sell electrical power and Associated Products through a Qualified Services Provider, provided that the Electrical Central does not share its measurement with the Load Center of a User Basic Supply.

Article 22.- The generation or import of electrical energy for the satisfaction of own needs or for export, without transmitting the said generation, is understood by isolated supply. energy by the National Transmission Network or by the General Distribution Networks. The assumptions contained in Articles 23, 24 and 25 of this Law do not constitute energy transmission by the National Transmission Network or by the General Distribution Networks.

Power plants will be able to allocate all or part of their production for isolated supply purposes. Loading Centers may satisfy all or part of their electrical energy needs for the isolated supply.

Isolated supply is not considered to be Electrical Supply. Isolated supply is an activity of the electrical industry and is subject to the obligations of this Law.

Authorization granted by the CRE is required to import or export electrical power in isolated supply mode.

Article 23.- Electrical Power Stations that allocate part of their production for isolated supply purposes may be interconnected to the National Transmission Network or to the Networks Distribution Generals for the sale of surplus and purchase of missing persons resulting from their operation in the form of Generator or Exempt Generator, provided that the corresponding interconnection contract is concluded and is subject to the Rules of Market and other applicable provisions.

Article 24.- The Load Centers that meet part of their electrical energy needs by means of the isolated supply may be connected to the National Transmission Network or to the General Distribution Networks for the purchase of electrical energy and Associated Products, in the form of Basic Supply User, Qualified Supply User or Qualified User of the Market, provided that the corresponding connection contract and subject to the Market Rules and other applicable provisions.

Article 25.- Exempt Generators and Generators are required to provide, to the extent of their physical possibilities, electrical power and Conexo Services when for reasons of The facilities of the National Electrical System or Electrical Supply may be put at risk or be put at risk, complying with the instructions of the CENACE, only for the duration of the emergency. In these cases, the Exempt Generators and Generators will be entitled to receive the consideration that corresponds to them in the terms of the Market Rules.

Chapter III

Power Transmission and Distribution

Article 26.- Carriers and Distributors are responsible for the National Transmission Network and the General Distribution Networks and will operate their networks according to the For the maintenance of the National Transmission Network and the elements of the General Distribution Networks that correspond to the Wholesale Electrical Market, the Carriers and the Distributors will be subject to the coordination and instructions from CENACE.

Article 27.- The general conditions for the provision of the Public Power Transmission and Distribution Service issuing the CRE shall be intended to determine the rights and obligations of the service provider and the user, for which they shall contain at least:

I.               The applicable rates;

II.              The features, scopes, and modes of the service;

III.             The criteria, requirements and advertising of information to provide open and non-unduly discriminatory access;

IV.            The credit and suspension conditions of the service;

V.             The scheme of penalties and bonuses for non-compliance with contractual commitments;

VI.            The conditions which, where appropriate, may be amended by common agreement with specific users, provided that this does not represent unduly discriminatory treatment and are extended to similar users, and

VII.           The procedure for complaint attention.

The CRE may establish and modify the terms that are necessary for the general conditions for the provision of services to reflect common uses in industry power at national and international level.

Article 28.- The Quality, Reliability, Continuity and Security obligations will be laid down in the general conditions for the provision of the Public Service Electric Power Transmission and Distribution and other provisions that will be issued by the CRE. Carriers and Distributors will have no liability for the costs that occur in the Wholesale Electrical Market as a result of the case. fortuitous or force majeure.

Article 29.- Carriers and Distributors will carry out the projects to expand and modernize the National Transmission Network and the General Distribution Networks. which are included in the corresponding programmes, after instruction from the Secretariat.

Article 30.- The State, through the Secretariat, the Carriers or the Distributors may form associations or enter into contracts with individuals to carry out The Nation's account, among others, is the financing, installation, maintenance, management, operation and extension of the infrastructure necessary to provide the Public Service for Transmission and Distribution of Electrical Energy.

The associations and contracts referred to in this Chapter shall be subject to the following conditions:

I.               The State will be responsible for the provision of the Public Service for Transmission and Distribution of Electrical Energy, being the individuals with whom the State contracts, jointly and severally responsible for the provision of the service, in the scope of the object of your participation;

II.              Partnerships and contracts shall be subject to the tariff regulation and the conditions for the provision of services issued by the CRE;

III.             The award of partnerships and contracts will be made through competitive processes that guarantee free competition;

IV.            The minimum percentage of national content will be determined by the Secretariat, provided that the international treaties and trade agreements signed by Mexico do not establish a percentage and there are national suppliers that can satisfy that content;

V.             Partnerships and contracts should provide for the transfer of technology and knowledge to Carriers and Distributors, and

VI.            In the form of levies on the rights derived from associations and contracts, it shall be stated that, under no circumstances, the goods in the public domain which are the subject of the same shall be guaranteed.

Article 31.- The Secretariat may determine the formation of partnerships or the conclusion of contracts for the purpose of financing, installation, maintenance, management, operation, extension, modernisation, surveillance and conservation of the infrastructure necessary to provide the Public Service for Transmission and Distribution of Electrical Energy in the area to be established for that purpose, in the case of assets of the Carriers or the Distributors of the companies State productive or when a Carrier or Distributor:

I.               Breach its obligations on Quality, Reliability, Continuity and Security;

II.              In the previous two years, generate minor returns to the product of your Return Target for the value of your assets or incur financial insolvency that requires extraordinary transfers;

III.             Do not carry out the projects contained in the programmes for the extension and modernisation of the National Transmission Network and the General Distribution Networks, or

IV.            Failure to comply with the obligations related to the Electrical Central interconnection and the Load Centers connection.

Article 32.- The Secretariat shall be empowered to convene individuals for the conclusion of the associations or contracts referred to in the previous article, to supervise and qualify the relevant processes and to order the conclusion of the respective partnerships or contracts.

Article 33.- Carriers and Distributors are required to interconnect the Electrical Central networks whose representatives request it, and to connect the Freight Centers to their networks. whose representatives so request, in non-unduly discriminatory conditions, where this is technically feasible.

Carriers and Distributors will need to interconnect the Power Stations and connect the Load Centers within the time limits specified in this article, once the works have been completed. specified by CENACE and complied with the official Mexican standards and other standards and specifications applicable to such facilities. In the event that the Carrier or Distributor deny or dilate the interconnection or connection, the CRE will determine if there is justified cause for this.

For the interconnection of the Electrical and Connection Centers of the Load Centers, the CENACE is obliged, at least, to:

I.               Define the general technical specifications required to perform the interconnections and connections;

II.              Define the specific characteristics of the required infrastructure to perform the interconnection or connection, at the request of the representative of the Power Station or the Load Center;

III.             Instruct the Carriers or the Distributors to conclude the contract of interconnection or connection, at the request of the representative of the Power Station or the Cargo Center, once the specific characteristics of the the infrastructure required or determined the exemption thereof. The Market Rules shall specify the maximum time limits for the representative to request the conclusion of such a contract on the basis of the specific characteristics of the required infrastructure;

IV.            Check that a verification unit or an inspection unit, as appropriate, approved on the terms defining the CRE, certifies in the formats that for that purpose it issues this, that the installation for the interconnection or the the connection meets the specific characteristics of the required infrastructure established by the CENACE, the applicable Mexican official standards other than those referred to in the following fraction and the other applicable standards;

V.             Check, in the case of connections of installations intended for the use of electrical energy for high voltage services and the provision of services in places of public concentration, that a unit of verification, approved in the terms defined by the Secretariat, certifies in the formats that for this purpose, the installation in question complies with the Mexican official standards applicable to such installations, and

VI.            Order the parties to perform physical interconnection or connection.

For the interconnection of the Power Stations and Connection of the Freight Centers, the Carriers and the Distributors are obliged to conclude the contracts of interconnection or connection, based on the models issued by the CRE within 10 working days following the notification of the corresponding order by the CENACE, and making the physical interconnection or connection within the seventy-two hours following the notification of the corresponding order of CENACE.

The Market Rules will establish the criteria for CENACE to omit the determination of the specific characteristics of the required infrastructure, as well as to exempt the Electricity Central and the certification burden centres referred to in section IV of this article, among other applicable criteria.

Article 34.- For the interconnection of the Electrical Central and the connection of the Load Centers, the Market Rules will establish criteria for the CENACE to define the specific characteristics of the required infrastructure, mechanisms for establishing the priority of applications and procedures for carrying out the joint analysis of requests affecting the same region of the country. In no case shall the generation permit be taken as a criterion for the ranking of requests for interconnection or connection, or as a requirement to request the determination of the specific characteristics of the required infrastructure.

The data subject may perform, at its own cost, the works to install the required infrastructure, or may request CENACE or the Distributors to include specific works in the programmes for the extension and modernisation of the National Transmission Network and the General Distribution Networks, provided that this brings a net benefit to the National Electricity System. On a proposal from CENACE, the CRE will issue general criteria for the assessment of such net benefit and to require guarantees for the development of the Power Plant or the Cargo Center.

The applicant shall conclude the interconnection or connection contract referred to in the third paragraph of the preceding article within ten working days. referred to in the penultimate paragraph of that Article. The CRE shall authorise the deposits in guarantee and the periodic fees required in the period prior to the entry into operation of the relevant Power Station or Load Centre.

Article 35.- When the works, extensions or modifications necessary for the interconnection or connection are not included in the programs of expansion and modernization of the Network National of Transmission and the General Networks of Distribution, the Generator, Exempt Generator or End User will be able to choose to realize them at their cost or to make contributions to the Transporters or the Distributors for their realization and to benefit of the same, under the terms, conditions and methodologies of calculation that are laid down in the Regulations or set out the CRE by means of administrative provisions of a general nature, in accordance with the following general

:

I.               The CENACE will perform or validate the calculation of contributions and other concepts referred to in this article, with the support of the Carrier or the Distributor in the event of requiring it;

II.              No works, extensions or modifications of transmission and distribution shall be constructed when the CENACE determines that they are opposed to the conditions of efficiency, quality, reliability, continuity, safety and sustainability;

III.             The works, extensions and modifications required for the Electrical Supply of individual end users at low voltage shall be exempt from the payment of contributions, when the distance between the post or the registration of a low net Existing voltage nearest to the premises of the person concerned is less than two hundred metres;

IV.            There shall be no contributions by the person concerned when the construction is carried out by the person concerned, in accordance with the respective specifications and standards, and

V.             When a particular works, extensions or modifications of transmission or distribution, or when it makes contributions for its realization, it will be given the option to acquire the Financial Rights of Transmission that or, failing that, the option of receiving the proceeds resulting from the sale of the same, in the terms of the Market Rules.

Article 36.- The CENACE will administer the Transmission Financial Rights in terms that set the Market Rules, themselves that will establish the mechanism for distribute income or surplus costs to the Market Participants resulting from the liquidation of such instruments.

Article 37.- The measurement of electrical energy and of the Connected Services delivered and received by the Power Stations and Load Centers that are represented by Generators or by Users Qualified Market Participants will be governed by the Market Rules. The measurement of the other Central Electrical and Cargo Centers shall be governed by the general conditions for the provision of the Public Service of Transmission and Distribution of Electrical Energy that the CRE or, in its absence, the CRE has to the effect Rules of the Market. The measurement of the electrical energy and the related services delivered and received in the other points of the National Electrical System will be governed by the Market Rules. Carriers, Distributors, and other persons responsible for the measurement are required to share the measurement data of the Electrical Central and the Load Centers with the Suppliers that represent them.

Article 38.- Carriers and Distributors will hold agreements with CENACE that will govern the delivery and billing of transmission and distribution services, with basis on contract models authorised by the CRE on a proposal from CENACE.

Article 39.- Carriers and Distributors will be able to execute on the streets, driveways, gardens, squares and other public places, the necessary works for the installation, maintenance and withdrawal of air and underground lines and equipment for the service. Such work shall be carried out with appropriate security measures and in such a way as not to prevent, unless unavoidable, the public use of the above mentioned sites. Upon completion of such works, the Carrier or the Distributor, as appropriate, will make the corresponding repairs.

Article 40.- It is up to the End User to perform at their expense and under their responsibility, the works and facilities intended for the use of the electrical energy, satisfy the technical and security requirements that the Mexican official standards set. Products, devices, equipment, machinery, instruments or systems that use electrical energy for operation and operation are subject to compliance with Mexican official standards.

Item 41.- Carriers and Distributors may only suspend service to End Users in the following cases:

I.               By chance and force majeure;

II.              For scheduled maintenance on the premises, provided it has been notified before the End User or its representative;

III.             For non-compliance with the payment or guarantee obligations of a Qualified User of the Market in front of CENACE, in which case the CENACE will issue the respective instruction;

IV.            For non-compliance with the timely payment obligations for the service provided, in which case the Supplier representing the Freight Centre shall issue the respective instruction;

V.             By termination of the Market Participant or Supply Contract contract, in which case the CENACE or the Supplier representing the Load Center, respectively, will issue the instruction;

VI.            For activities or omissions that prevent the proper functioning of the networks or alter or prevent the normal functioning of the control or measurement instruments;

VII.           For non-compliance with official Mexican standards, or poor operation or failures at the End User facility;

VIII.          For the use of electrical energy in contravention of the provisions of the Market Rules or the general conditions for the provision of Electrical Supply, as appropriate, and

IX.            For non-compliance with contractual obligations where in the contract it is stipulated that such non-compliance implies the suspension of the service.

In the cases mentioned above, the Carriers and the Distributors may proceed to the court of the service without requiring the prior intervention of any authority, and shall only be restore the service when the causes that originated the cut are remedied.

In the event of a suspension of service that is subsequently determined to be improper, the responsibilities arising shall correspond to the CENACE or the Supplier that has issued the instruction, as long as the Carrier or Distributor successfully executed it.

In case the Carrier or Distributor does not execute the suspension within 24 hours of receipt of the CENACE or Supplier instruction, the consumption that The subsequent period will be charged to the Carrier or the corresponding Distributor.

Article 42.- The Public Power Transmission and Distribution Service is considered to be of social interest and public order, so it takes precedence over any other activity involving the use of the surface and the subsoil of the land affected by the land. For all legal purposes, the Public Power Transmission and Distribution Service is of public utility. The necessary premises for the installation of the National Transmission Network and the General Distribution Networks are subject to legal servitude.

Article 43.- The transport of electrical energy through Particular Networks will be subject to the general administrative provisions that the CRE will issue to the effect. Article 8 of this Law shall not apply to Particular Networks.

Generation permits will include financing, installation, maintenance, management, operation, extension, modernization, surveillance and conservation of the Particular Networks. are necessary to deliver the production of the Electrical Central to the National Transmission Network or the General Distribution Networks, or for the purpose of isolated supply. The Private Networks shall not be part of the National Transmission Network or the General Distribution Networks and shall be subject to the legal regime applicable to the Electrical Central to which they belong.

Article 44.- Prior agreement between the interested parties, the non-objection of the CENACE and the favorable determination of the CRE, the Carriers or the Distributors will be able to agree acquisition of the Particular Networks, to be integrated into the National Transmission Network and the General Distribution Networks, as appropriate. In its absence, and upon request of the owner and the non-objection of the CENACE, the CRE may determine that a Particular Network will be transferred to a Carrier or a Distributor free of charge. For the purposes of the above, the CENACE will verify the technical convenience of the integration of such networks, and the CRE will verify that it involves a net benefit to the National Electrical System.

Chapter IV

Power Marketing

Article 45.- Marketing comprises one or more of the following activities:

I.               Provide Electrical Supply to End Users;

II.              Represent the Exempt Generators in the Wholesale Electrical Market;

III.             Carry out the transactions referred to in Article 96 of this Law, in the Wholesale Electrical Market;

IV.            To conclude the contracts referred to in Article 97 of this Law, with the Market Generators, Traders and Qualified Users;

V.             Acquire the transmission and distribution services on the basis of the Fares;

VI.            Acquire and dispose of the Conexo Services not included in the Electricity Market, with the intermediation of CENACE, and

VII.           The others to determine the CRE.

Article 46.- To render the Electrical Supply or represent the Exempt Generators, the CRE's permission is required in Supplier mode. The CRE may establish specific requirements to provide the Basic Supply and to provide the Supply of Last Resource in order to promote the efficiency and quality of such services.

Without prejudice to the fact that they are subject to the measurement requirements set out in the general conditions for the provision of the Public Service for Transmission and Distribution of Energy Electric or in the Market Rules, the following activities are not considered to be marketing, so do not require permission or registration:

I.               The sale of electrical power from an End User to a third party, provided that the electrical power is used within the End User's facilities, and

II.              The sale of electrical power from a third party to an End User, as long as the electrical power is generated from the Distributed Generation within the End User facility.

Article 47.- The Electrical Central and the Controlable Demand will be operated in accordance with the instructions of the CENACE. For this purpose, the Suppliers representing Electrical Central and Controlled Demand will notify the instructions they receive from the CENACE, in the terms of the Market Rules.

Article 48.- With the exception of Qualified Users, Basic Services Providers will offer Basic Supply to all persons who request it and whose Centers of Cargo are located in the areas where they operate, provided that this is technically feasible and complies with the applicable provisions, under non-unduly discriminatory conditions.

Qualified Service Providers will be able to offer Qualified Provisioning to Qualified Users in conditions of free competition.

Last Resource Providers will offer the Last Resource Supply to all Qualified Users who require it and whose Load Centers are located in the areas where they operate, provided that this is technically feasible and complies with the applicable provisions, under non-unduly discriminatory conditions.

In the event that the Basic Services Suppliers or the Last Resource Suppliers deny or dilate the Electrical Supply, the CRE will determine if there is a justified cause for this.

Article 49.- Basic Supply Users with Controlable Demand will be able to offer their reduced demand and Associated Products through a Basic Services Provider. The CRE shall issue the contract models and calculation methodologies, criteria and bases for determining and updating applicable consideration, reflecting the economic value that it produces to the Supplier.

Article 50.- The general conditions for the provision of the Electrical Supply issued by the CRE shall be intended to determine the rights and obligations of the service provider and of the End User, for which they shall contain at least the information that the Suppliers shall make available to the End Users and the non-unduly discriminatory conditions to which the service will be subject.

Article 51.- Prior to the start of the Basic Supply or Qualified Supply, the End User must enter a supply contract with a Supplier. Such contracts must comply with the general conditions for the provision of Electrical Supply and, in the case of Basic Supply, must be registered with the Federal Consumer Procurator. prevera in the Qualified Supply contracts and Market Participant contracts that are concluded by Qualified Users.

Article 52.- The CRE shall establish the minimum requirements and amounts of Electrical Coverage Contracts that the Suppliers shall have for electrical energy and Products Associates who will supply the Load Centers to represent, and verify compliance.

Article 53.- Basic Services Providers will hold Electrical Coverage Contracts exclusively through auctions that will be conducted by CENACE. The terms for conducting such auctions and assigning the respective Electric Coverage Contracts will be provided in the Market Rules.

Article 54.- The CRE will establish the requirements that the Suppliers and Qualified Users of the Market, if any, must observe in order to acquire the power that allow them to supply the Load Centers that they represent.

To check compliance with these requirements, the CRE will verify that the instruments that the Market Participants Qualified Users and Users use to cover their power obligations are consistent with the capabilities of the Electrical and Controllable Controllable Demand (s) registered with the CENACE and with the installed capabilities.

The Market Rules will define the criteria for crediting the power of the Distributed Generation Electrical Central, or the criteria for adjusting to the requirements to acquire power by End Users with Distributed Generation.

Article 55.- The Secretariat will intervene with the Basic Services Provider that is in breach of its payment or guarantee obligations against CENACE.

The Secretariat may further determine that the assets, rights and obligations of such Basic Services Provider are transferred to another Basic Services Provider, as well as the required transition measures, safeguarding the Continuity of Service.

The production companies of the State and its subsidiary companies and subsidiaries that are suppliers will guarantee the delivery of the Electrical Supply to the End Users of the Supplier of Basic Services that is in liquidation until they are transferred to a new Supplier.

Article 56.- In case of non-compliance with the payment or warranty obligations of a Qualified Services Provider, or when a Qualified Services Provider leaves to provide services to a Exempt Generator or a Qualified User for any reason, without having chosen another Marketer, the Supplier of Last Resource concerned will purchase the production of the Exempt Generators and will provide the Supply of Last Resource to Qualified Users Affected, Until such time as they are engaged in the purchase and sale of electricity under any of the existing modalities.

The CRE will establish the mechanisms for assigning Qualified Users and Exempt Generators to the Last Resource Providers.

Article 57.- When there is no permit to provide Last Resource Supply in a geographical area or for a user class, the Basic Services Providers be required to provide the Supply of Last Resort. For this purpose, the separation referred to in Article 8 of this Law shall not be required.

Article 58.- The CRE will issue and apply the methodologies to determine and adjust the maximum rates of the Last Resource Suppliers and the maximum supply prices. Last Resource. Such maximum rates and maximum prices or the parameters used for their calculation may be determined by means of competitive processes which, for this purpose, order the CRE. The CRE shall determine the other conditions for the Suppliers of Last Resort. Last Resource Provisioning Users will not benefit from resources dedicated to Basic Supply.

Chapter V

of Qualified Users

Article 59.- Qualified User Quality is acquired by registration in the corresponding record in charge of the CRE. The registration shall be obtained by application to the CRE by the electronic means established for that purpose. The applicant shall prove that the loading centres to be included in the register comply with the required levels of consumption or demand set by the Secretariat.

End Users whose Load Centers meet the features to be included in the Qualified User registry may choose to maintain the Quality of Supply User Basic, as long as they are not in the assumptions set out in the following article.

A person can register as a Qualified User for Electrical Supply in certain Load Centers and in turn maintain the Basic Supply User Quality for the Electrical Supply in other Cargo Centers. For these purposes, the Qualified User and Basic Provisioning User will be considered to be different End Users.

Article 60.- They are required to perform and maintain their enrollment in the Qualified Users registry those Load Centers that:

I.               They have been included in the Qualified Users registry, regardless of the evolution of their demand, or

II.              Do not receive the Public Power Service at the entry into force of this Law and meet the requirements to be included in the Qualified User registry.

The registration of the Loading Centres may be cancelled after three years of registration, provided that notice has been given to the CRE one year before the date of cancellation. In this case, an additional period of three years must elapse so that the Load Centers can be included again in the Qualified User registry.

The division of Cargo Centers is prohibited in order to evade the levels of consumption or demand established by the Secretariat or other rules that require the End User to register as a Qualified User. The CRE will give an opinion on the alleged cases of division of Cargo Centres for this purpose, in the terms of the general administrative provisions which the effect issues.

The CRE will verify that the Load Centers that are bound to it are included in the Qualified User registry.

In case a End User does not make such a record, the CRE will register it and notify the corresponding Supplier to provide the Last Resource Supply to the End User at These Load Centers up to as long as you contract the Electrical Supply through a Qualified Services Provider or in a Qualified User Mode of the Market.

The Secretariat will periodically determine and adjust the levels of consumption or demand that will allow End Users to be included in the Qualified User registry. In addition, the Secretariat shall establish the terms under which End Users belonging to the same economic interest group may add their Cargo Centers in order to achieve the levels of consumption or demand in mention. The adjustments to these levels will be made known with the anticipation determined by the Secretariat, in order for these End Users to contract the Electrical Service through a Qualified Services Provider or in User mode. Qualified Market Participant.

Article 61.- Qualified Users will be able to receive the Electrical Supply and offer the reduction of demand and the Associated Products resulting from their Controlled Demand through of a Qualified Services Provider.

Article 62.- The holders of the Load Centers that are supplied without the representation of a Supplier will be called Qualified Users Market Participants. With the exception of the provision of Electrical Supply to third parties and the representation of Exempt Generators third parties, Qualified Users of the Market may perform the marketing activities referred to in Article 45 of this Law.

Article 63.- The services provided to Qualified Users of the Market shall not be applicable to the second paragraph of Article 113 of the Federal Protection Act. Consumer.

Article 64.- Qualified Users will operate the Controlable Demand that they represent according to the CENACE instructions.

Chapter VI

Of The Small Electrical Systems

Article 65.- Small electrical systems that are used to supply electrical power to the general public and are not permanently connected shall be considered as small electrical systems. to the National Transmission Network. The control area of Baja California and the interconnected system of Baja California Sur are not considered small electrical systems.

Article 66.- The Secretariat may authorize the terms and conventions under which the members of the electrical industry will collaborate within the small electrical systems, The purpose of providing the Electrical Supply in conditions of efficiency, Quality, Reliability, Continuity, Safety and Sustainability. Where small electrical systems have the authorization referred to in this Article, the strict legal separation and rules referred to in Article 8 of this order shall not apply to them.

Article 67.- The Market Rules may establish special schemes for the operation of small electrical systems as well as for the control area of Baja California and for the interconnected system of Baja California Sur. The Operational Control of the above is the faculty of the CENACE, who can form associations or conclude contracts with third parties for the performance of this activity, after authorization from the Secretariat.

Chapter VII

From Distributed Generation

Article 68.- The Distributed Generation will have open and non-unduly discriminatory access to the General Distribution Networks, as well as access to markets where it can sell their production. For this purpose:

I.               The National Electrical System Development Program will consider the expansion and modernization of the General Distribution Networks that are required to interconnect the Distributed Generation;

II.              The general technical specifications required for the interconnection of new electrical power stations shall include provisions specific to the Distributed Generation so that, in typical cases, requests for interconnection these Electrical Power Stations do not require studies to determine the specific characteristics of the required infrastructure;

III.             The CRE shall establish the regulatory basis for authorizing specialized inspection units in Distributed Generation Electrical Central (s) that may exercise the function referred to in Article 33, fraction IV of this Law;

IV.            The general conditions for the provision of the Public Power Distribution Service, or the Market Rules, will ensure the implementation of measurement procedures to integrate the Generation Distributed;

V.             The general conditions for the provision of Electrical Supply shall ensure commercial processes to facilitate the sale of energy and products associated with the Distributed Generation;

VI.            The CRE will issue and implement the necessary regulation on efficiency, quality, reliability, continuity and security of the Distributed Generation, and

VII.           The other applicable provisions shall ensure open access to the General Distribution Networks of the Distributed Generation.

Article 69.- The Secretariat will encourage the granting of credits and other schemes for the financing of Distributed Clean Generation Electrical Power Stations.

Article 70.- The CRE will encourage the training of companies and their staff, as well as independent professionals and technicians, for the installation of Electrical Power Generation Clean Distributed.

Chapter VIII

Surface Use and Occupation

Article 71.- The electrical industry is considered to be of public utility. The occupation or surface affectation or the constitution of easements necessary to provide the Public Service of Transmission and Distribution of Electric Power, and for the construction of plants of generation of electric power in cases where, by project characteristics, a specific location is required, according to applicable provisions.

Electricity transmission and distribution activities are considered to be of social interest and public order, so they will take precedence over any other involving the taking advantage of the surface or subsoil of the land affected by those areas.

The Federation, the governments of the States and the Federal District, the municipalities and the delegations, will contribute to the development of projects for the generation, transmission and distribution of electricity, by means of procedures and coordination bases which speed up and ensure the granting of permits and authorisations in the field of their competence.

Article 72.- Mining dealers, as well as holders of allowances, permits or contracts, may not object to the laying of pipelines, cables or the installation of any other infrastructure for the transmission and distribution of electrical energy in the area covered by the concession, allocation, permit or contract in question, provided that it is technically feasible.

In the facilities and road rights of the infrastructure of the National Electricity System, access to the largest number of public service providers of industries will be permitted. other than electricity in return for fair remuneration, provided that the security and continuity of the provision of services is not put at risk. The CRE will issue the necessary provisions for such access to be permitted and will monitor compliance with this obligation, as well as the way in which the fees of the electricity industry's activities will be affected by the costs of the duties. The Carriers and Distributors may only charge fees established by the CRE for the use of their infrastructure and provide the information that this Commission requires to regulate such activity.

The works and infrastructure referred to in this article must comply with the regulations issued by the CRE in matters of security, and also be necessary, appropriate and proportional to the requirements of the Nation.

Article 73.- The consideration, the terms and conditions for the use, enjoyment or affectation of the land, property or rights necessary to perform the activities to which the Article 71 of this Law shall be negotiated and agreed between the owners or owners of such land, property or rights, including real, ejido or communal rights, and those interested in carrying out such activities. In the case of private ownership, the acquisition may also be agreed.

The provisions of this Chapter shall apply in respect of the rights which the Constitution, the laws and international treaties signed by the Mexican State recognize, indigenous communities.

Article 74.- The negotiation and agreement referred to in the previous article shall be conducted in a transparent manner and subject to the following bases and to the provisions emanating from this Act:

I.               The interested party must express in writing the owner or owner of the land, either right or right in question, his interest in using, enjoying, affecting or, where appropriate, acquiring such land, property or rights;

II.              The interested party must show and describe the project that it plans to develop and to address the doubts and questions of the owner or owner of the land, either right or right, in a way that understands its scope, as well as the possible consequences and effects that could be generated by its implementation and, where appropriate, the benefits it would represent to it in the personal and/or in its community or locality;

III.             The Secretariat may provide for the participation of social witnesses in the negotiation process, in terms of the applicable legal provisions;

IV.            Interested parties shall notify the Secretariat of Agrarian, Territorial and Urban Development of the beginning of the negotiations referred to in this Article;

V.             The form or modality of use, enjoyment, affectation or, where appropriate, acquisition that is agreed must be suitable for the development of the project in question, according to its characteristics. For this purpose, the figures for leasehold, voluntary servitude, superficial occupation, temporary occupation, sale, permuse and any other that do not contravene the law may be used;

VI.            The consideration to be agreed shall be proportionate to the requirements of the parties in accordance with the activities of the electrical industry which are carried out by the person concerned.

According to the different forms or modalities of use, enjoyment, affectation or, where appropriate, acquisition that it is agreed, the holders of the land, property or rights shall have the right to cover the consideration, as the case may be:

a) The payment of the affections of goods or rights other than the land, as well as the forecast of the damages, which could be suffered as a result of the project to be developed, calculated on the basis of the usual activity of that property, and

b) The rent for occupation, servitude or land use.

In the provisions of points (a) and (b) above, the commercial value shall be considered;

VII.           The payments of the consideration to be agreed may be covered in cash and, where appropriate, by any of the following:

a) Commitments to execute development projects for the benefit of the affected community or locality;

b) Any other benefit that is not contrary to the law, or

c) A combination of the above.

Without prejudice to the arrangements for consideration of this fraction, it may be proposed the owner, owner of the right or members of the community or locality to which they belong, the acquisition of goods or inputs, or the services manufactured, supplied or provided by such persons, where this is compatible with the project;

VIII.          The consideration, as well as the other terms and conditions that are agreed upon for the acquisition, use, enjoyment or affectation of the land, property or rights shall invariably consist in a written contract, subject to the guidelines and models of contracts issued by the Secretariat for Agricultural, Territorial and Urban Development, in coordination with the Energy Secretariat.

The contract must contain at least the rights and obligations of the parties as well as possible dispute settlement mechanisms, and

IX.            The contracts in which the agreements reached cannot provide for confidentiality clauses on the terms, amounts and conditions of the consideration, which penalize the parties for their disclosure.

Article 75.- Where land, property or rights subject to the arrangements provided for in the Agrarian Law are involved, in addition to the provisions of that law and the other provisions In this Chapter, the following shall be observed:

I.               The ejido, ejidatarios, communities or comuneros may request the counseling and, if appropriate, representation of the Agrarian Attorney General in the negotiations referred to in this Chapter;

II.              The authorization for the use, enjoyment or affectation and other permitted acts must be subject to the conditions laid down in Articles 24 to 28, 30 and 31, without prejudice to the other applicable provisions. of the Agrarian Law for the acts referred to in Article 23 (VII) to XIV of that law, and

III.             For ejidatarios or comuneros which, in accordance with the applicable provisions, have recognized rights individually, they must be given directly the respective consideration for the acquisition, use, enjoyment or affectation of such rights. Otherwise, they will be delivered through the National Ejidal Promotion Fund Trust, or any other trust if the parties so agree.

Article 76.- The Institute of National Assets Administration and Avaluos will draw up and keep tabs on the average land values and, where appropriate, their accessories, for use, occupation or acquisition, according to their characteristics, as well as other tabulators and reference mechanisms to be determined. Such tabulators shall serve as a basis for the initiation of negotiations to be conducted in accordance with the foregoing Articles.

The person concerned shall accompany the document referred to in Article 74 (I), the tabulators referred to in the preceding paragraph, as appropriate to his proposal.

Article 77.- The parties may agree to the practice of endorsements by the Institute, credit institutions of the country that are authorized, public corridors or professionals with a post-graduate degree, provided that they are part of the standard set out in the terms that indicate the regulatory provisions of this Law.

The cited avalanches will consider, among other factors:

I.               The forecast that the project to develop will generate, within its area of influence, a surplus value of the land, property or rights in question;

II.              The existence of characteristics in buildings, property or rights which, without being reflected in their commercial value, makes them technically suitable for the development of the project in question;

III.             The affectation in the remaining portion of the real estate of which the fraction is part to be acquired, used or enjoyed;

IV.            The additional costs not provided for in the commercial value, in order for the persons concerned to replace the land, property or rights to be acquired, where the migration of the affected persons is necessary, and

V.             In cases of granting of the use or enjoyment of the land, property or rights, the provision of the damages, the inconvenience or affectations that the owners may suffer for the purpose of the project to be developed, including those corresponding to goods or rights other than the land, or the possible injury for the time the property is affected, calculated on the basis of the usual activity of that property.

For acquisitions, in no case will the value be less than the commercial value.

Any other elements that are practised may be considered by the Institute as appropriate.

Article 78.- The agreement reached at any time between the parties shall be filed by the person concerned before the District Judge in civil matters or Agricultural Unit Court competent, in order for it to be validated, giving it the character of res judicata.

For the above, the Agricultural Unit Judge or Court shall proceed to:

I.               Verify that the formalities required by both this Law and, where applicable, the Agrarian Law and other applicable provisions have been fulfilled, and

II.              Order the publication of an extract of the agreement reached, at the expense of the person concerned, in a local newspaper and, if appropriate, in the most visible places of the respective ejido.

The District Judge or Agricultural Unit shall issue its judgment, which shall have the character of the judgment, within 15 days of the first publication to which the (a) the former, provided that he has no knowledge of the existence of a pending trial involving the land, property or rights in question.

Against the resolution issued will only proceed with the trial of amparo.

Article 79.- In case of no agreement between the parties, one hundred and eighty calendar days from the date of receipt of the document referred to in the Part I of Article 74 of this Law, the person concerned may:

I.               Promote before the District Judge in civil matters or the competent Agricultural Unit the constitution of the legal easement referred to in Article 82 of this Law, or

II.              To request the Secretariat for Agrarian, Territorial and Urban Development a mediation that will deal with the forms or modalities of acquisition, use, enjoyment or affectation of the land, property or rights, as well as the consideration that corresponds.

Article 80.- The mediation referred to in the previous article shall be developed, at least, according to the following bases:

I.               The Secretariat for Agrarian, Territorial and Urban Development will listen to the parties and suggest the form or modality of acquisition, use, enjoyment or affectation that reconciles their interests and claims, according to the characteristics of the project and seek to ensure that the parties reach an acceptable and voluntary solution, seeking to improve their communication and future relationship;

II.              In order to suggest the amount of consideration, you will be the following:

(a) If prior to the mediation, the parties would have carried out endorsements for each of them, pursuant to Article 77 of this Law:

1.       Such endorsements must be taken into account whenever they coincide with the form or modality of acquisition, use, enjoyment or affectation that the Secretariat of Agrarian, Territorial and Urban Development suggests. Otherwise, it shall be carried out in accordance with paragraph (b) below;

2.       In case the difference between the two experts ' guarantees is less than 15%, the Ministry of Agrarian, Territorial and Urban Development will take the simple average of the guarantees and the result will be the basis for formulating the suggestion. for consideration by the Secretariat, and

3.       In case the difference between the two experts ' endorsements is greater than 15%, the Secretariat for Agrarian, Territorial and Urban Development will ask the Institute or an expert to randomly select from the list referred to in the Article 77 of this Law, the practice of an endorsement, the result of which will serve as the basis for formulating the suggestion for consideration of the aforementioned Secretariat, and

b) In case the parties have not practiced avalums in terms of article 77 of this Law, the Secretary for Agrarian, Territorial and Urban Development will ask the Institute or an expert to randomly select from the list referred to in Article 77 of this Law, the practice of an endorsement that will serve as a basis for the suggestion of consideration to be made by the Ministry of Territorial and Urban Development.

In the development of mediation, it shall be in accordance with the provisions of Article 74, fractions V to VII of this Law.

Article 81.- If within thirty calendar days, counted from the suggestion of consideration referred to in section II of the previous article, the parties do not reach an agreement, the Secretariat for Agrarian, Territorial and Urban Development may propose to the Federal Executive the constitution of a legal serfdom by way of administration.

Article 82.- The legal easement shall comprise the right of transit of persons; the right of transportation, driving and storage of construction materials, vehicles, machinery and goods of all kinds; the construction, installation or maintenance of the infrastructure or the carrying out of works and works necessary for the proper development, operation and monitoring of the activities referred to in Article 71 of the this Law, as well as all those necessary for that purpose.

Legal easements will be decreed in favor of the person concerned and will be governed by the provisions of the federal common law and the controversies related to them, whichever is the case. their nature, they will be the jurisdiction of the federal courts.

Legal easements may be decreed by via jurisdictional or administrative, in terms of this Law and other applicable provisions.

The experts appointed by the judicial authority shall observe the provisions of Article 77 of this Law and, in the course of the conduct, as indicated in fractions V to VII of the Article 74 of this Law.

Article 83.- The consideration that corresponds to the legal easement that is decreed by administrative means, will be determined based on the suggestions that have been formulated in accordance with Article 80 (II) of this Law.

In the case of other forms of acquisition or affectation by public law figures, the respective compensation shall be determined in accordance with the provisions of Article 77 and, Case, the values of the avalanches that are obtained according to the II fraction of Article 80 of this Law.

Article 84.- The provisions of the foregoing articles shall not be prevented by the parties from continuing their negotiations and reaching an agreement at any time, with the provisions of Article 78 of this Law.

Article 85.- The dependencies mentioned in this Chapter may conclude the collaboration and coordination agreements that they require for the fulfillment of their attributions.

Article 86.- The endorsements that are practiced in terms of this Chapter, as well as the fees that, if any, are caused by the participation of social witnesses, will be covered for those interested.

Article 87.- Those interested in carrying out the activities referred to in Article 71 of this Law shall refrain from carrying out, directly or indirectly, conduct or practice. abusive, discriminatory or seeking to unduly influence the decision of owners or owners of land, property or rights during the negotiations and procedures referred to in this Chapter.

In cases where it is established that such persons are engaged in the conduct referred to in this Article on more than one occasion, the permits or authorizations granted for the performance of the above activities may be revoked.

Article 88.- Without prejudice to the other provisions and penalties provided for in this Law and other applicable, as well as legal actions that proceed:

I.               The agreement reached between the parties shall be void where the violation of the provisions of the first paragraph of Article 77 of this Law is established.

II.              It shall be the cause of termination of the contract referred to in this Chapter or, where appropriate, the declaration of the subsistence of the legal servitude shall be made when:

a) Works or works to be developed do not start within the deadlines set in the contract held between the person concerned with the owner or owner of the land, or the right or right in question or in the authorities of the authorities;

(b) The ground that is the object of the same is intended for use other than that which justified the affectation, and

c) Please declare null or cancel the permission or authority of the data subject.

Article 89.- The contracts concluded between those interested in carrying out the activities referred to in Article 71 of this Law and the owners or owners of land, the goods or rights concerned shall, where appropriate, provide for the financial mechanisms to be adopted by the persons concerned to ensure that the dismantling of their facilities and the abandonment of the land they have occupied, used, enjoyed or affected by (i) the Commission's activities are carried out on the basis of commitments agreed with the owners of land, property or rights and best practices, restoring them to the full enjoyment of their rights.

The contracts referred to in the preceding paragraph must also provide for at least financial mechanisms for the persons concerned to cover the damage and damage to their activities and operations may cause owners or holders of land, property and rights not provided for in the consideration to be agreed under this Chapter.

Chapter IX

From Development to the National Industry

Article 90.- The Secretariat of the Economy, with the opinion of the Secretariat, will define strategies for the industrial promotion of local production chains and for the promotion of direct investment in the electricity industry, with particular attention to small and medium-sized enterprises, as follows:

I.               The strategy for the industrial promotion of local production chains should:

a) Identify the industrial sectors and regions where the strategy will focus, aligned to the Demand from the electricity industry, for this purpose, may contract the performance of studies identifying existing products and services on the market, as well as the suppliers that offer them;

b) Integrate, manage and update a catalog of national suppliers for the electrical industry, in the registration of national companies interested in participating in the industry and their development needs;

c) Implement programs for the development of national suppliers and contractors, from the Detection of business opportunities;

d) Drive the closure of business quality and technical capacity gaps, through programs support for technical and financial assistance, and

e) Integrating an advisory board, headed by the Secretariat of Economy, with representatives of the Secretariat, CRE, academics and representatives of the private sector or industry.

This council will support in the definition of policies, criteria and methodologies for the diagnosis of the offer products, goods and services; the promotion of national industry; the formation of regional and national production chains; and the development of talent for human resources, innovation and technology, and

II.              The strategy for the promotion of direct investment should:

a) Encourage the direct participation of Mexican companies to carry out, themselves, the activities in the electrical industry;

b) To promote the partnership between Mexican and foreign companies, to carry out the activities in the electrical industry;

c) Promoting domestic and foreign investment for stay in Mexico activities directly in the electrical industry, or in the manufacture of goods or services related to this industry, and

d) Driving technology and knowledge transfer.

It is up to the Secretariat of the Economy to follow up on the progress of the strategies referred to in this article, as well as to prepare and publish an annual report on progress. in the implementation of these strategies, which shall be submitted to the Congress of the Union by 30 June of each year at the latest.

In order to contribute to compliance with the provisions of this article, the Economy Ministry will support the Public Trust to Promote the Development of Suppliers and Contractors National Energy Industry.

Article 91.- The Economy Secretariat will establish the methodology to measure the degree of national content in the electrical industry, as well as its verification, for which it may have the support of an independent third party or the authorities of the Sector.

Companies in the electrical industry will be required to provide information to the Secretariat of Economy on the degree of national content in the activities they perform, as required by the lay down the provisions for such an effect.

Article 92.- The Public Trust to Promote the Development of National Energy Industry Suppliers and Contractors will be created in a banking institution. development. Its purpose will be to promote the development and competitiveness of local and national suppliers and contractors, through financing schemes and support programs for training, research and certification, in order to close the gaps. of technical and quality capacity, giving special attention to small and medium-sized enterprises.

Article 93.- The Secretariat and the CRE, with the opinion of the Secretariat of Economy, will have to establish under the conditions that will be included in the contracts to be concluded for the financing, installation, maintenance, management, operation and extension of the infrastructure necessary to provide the Public Service of Transmission and Distribution of Electrical Energy that, under the same circumstances, including prices, quality and timely delivery, preference should be given to:

I.               The acquisition of national goods, and

II.              The hiring of services of national origin, including training and hiring, at the technical and managerial level, of people of Mexican nationality.

THIRD TITLE

From The Wholesale Electrical Market

Chapter I

Of The Wholesale Electrical Market Operation

Article 94.- The CENACE will operate the Wholesale Electrical Market under this Law. In the Wholesale Electric Market, the Generators, Traders and Qualified Users of the Market will be able to carry out the transactions referred to in Article 96 of this Law, in accordance with the Market Rules. Invariably the prices of the transactions held in the Wholesale Electrical Market will be calculated by the CENACE based on the offers it receives, in the terms of the Market Rules.

Article 95.- The Wholesale Electrical Market will operate based on the physical characteristics of the National Electrical System and will be subject to the provisions of the Market Rules, At all times, we are trying to achieve a level playing field for all market participants, promoting the development of the National Electrical System in conditions of efficiency, quality, reliability, continuity, safety and sustainability.

The CRE will issue the Electrical Market Bases. CENACE will issue the Market Operating Provisions. The CRE shall establish mechanisms for the authorisation, review, adjustment and updating of the Market Operating Provisions, which shall include the participation of other members of the electrical industry.

The issuance of the Electricity Market Bases and Market Operating Provisions will not be subject to Title Third A of the Federal Administrative Procedure Act. The Electrical Market Bases and the Operating Provisions of the Market will produce legal effects at the time of their notification to the Market Participants, which may be carried out in accordance with the Second Title of the Trade Code or the electronic publication by the CRE or CENACE, as appropriate.

Without prejudice to the foregoing, the procedures inherent in the modification of the Electrical Market Bases and the Market Operating Provisions should be made known Market participants should have the right to issue opinions or comments on the market within a period of no more than 20 working days. When necessary to preserve the efficiency, quality, reliability, continuity, safety and sustainability of the National Electrical System, the CRE and CENACE will be able to issue Market Rules immediately, receiving opinions and comments later.

Article 96.- The Market Rules will establish procedures that allow you to perform, at least, purchase and purchase transactions from:

I.               Electrical power;

II.              Related services to be included in the Wholesale Electrical Market;

III.             Power or any other product that ensures the sufficiency of resources to meet electrical demand;

IV.            Previous products, via import or export;

V.             Transmission Financial Rights;

VI.            Clean Energy Certificates, and

VII.           Other products, collection rights and penalties that are required for the efficient operation of the National Electrical System.

Also, the Market Rules will set the minimum requirements to be Market Participant, determine the rights and obligations of Market Participants and define mechanisms for dispute resolution.

Article 97.- The Market Generators, Marketers and Qualified Users will be able to hold Electrical Coverage Contracts to perform purchase and sale related to electrical energy, power or services connected to a node of the National Electrical System, as well as to the Transmission Financial Rights, subject to the obligations to inform the CENACE provided by the Rules of the Market. They may also enter into Electrical Coverage Contracts to acquire or perform operations related to the Clean Energy Certificates, subject to the regulation issued by the CRE to validate the ownership of such certificates.

Article 98.- The Generators, Marketers and Qualified Users may participate in the Wholesale Electrical Market, upon conclusion of the Market Participant contract. with the CENACE and the presentation of the guarantee that corresponds in terms of the Market Rules. The CENACE will apply, if necessary, the amount of the guarantee deposited by the Participant for the payment of the services pending settlement and the fines that correspond and will return the remainder to the Participant of the Market.

Generators, Suppliers and Qualified Users of the Market should notify CENACE of each Power Station and each Cargo Center they represent or intend to represent in the Wholesale Electrical Market.

The general terms and conditions of the agreements and contracts concluded by CENACE with the Market Participants shall be subject to the prior authorisation of the CRE.

Article 99.- The Market Rules will establish the mechanisms for CENACE to instruct the production, provision, or acquisition of Related Services. The prices of the Related Services not included in the Wholesale Electrical Market will be fixed on the basis of the regulated tariffs determined by the CRE.

Article 100.- The CENACE may invoice, process or charge the transmission, distribution, Conexo Services that are not included in the Wholesale Electrical Market and its own operating costs in accordance with the Fares, as well as the transactions held in the Wholesale Electrical Market, directly or through a third party.

The Market Rules will define the other products, collection rights and penalties that CENACE will apply to ensure the efficient operation of the Electrical System. National.

The payments made between CENACE and the Market Participants will be maintained on balance, with the exception of the income from the collection of regulated tariffs that CENACE perceives to cover its operating costs and payments that CENACE processes between the Market Participants and third parties, in the terms of the Market Rules. CENACE may establish residual income accounts in order to maintain such balance between periods.

Article 101.- Based on the Security of Dispatch and economic efficiency criteria, the CENACE will determine the allocation and dispatch of the Electricity Central, Controllable and the import and export programmes. Such assignment and dispatch shall be executed independently of the ownership or representation of the Electrical Central, the Controlled Demand, or import and export offers.

Article 102.- CENACE shall restrict or suspend participation in the Wholesale Electrical Market to those who incur serious breaches of the Market Rules, without require prior intervention by any authority, as long as they do not regulate their situation and do not cover the obligations arising from their non-compliances.

Article 103.- The CENACE will periodically formulate and update a program for the operation of Electrical Power Stations that present limitations on the total energy they can generate in a period and the use of Guaranteed Controllable Demand whose representatives, in the terms of the Market Rules, have declared limits on the total energy that they can cease to consume in a period. Such a program will consider the hydrological, environmental and fuel supply constraints, as well as the permitted use of the Controlled Demand, among others. For the preparation of such a program, CENACE will coordinate with the competent authorities and the Market Participants, in the terms of the Market Rules. Likewise, the Secretariat of Environment and Natural Resources, the National Water Commission and the National Center for Natural Gas Control will establish with the CENACE the mechanisms of information exchange that are required to facilitate the compliance with their respective privileges.

Article 104.- The representatives of the Electrical Central will offer to the Wholesale Electrical Market the totality of the available capacities to produce electric power, Power and Related Services in such Electrical Power Stations, subject to the operational parameters and regulatory obligations thereof. Likewise, the Guaranteed Controllable Demand representatives will offer to the Wholesale Electric Market the totality of the available capacities to reduce their consumption of electric power and to produce Services Conexas in said Demand Controllable. The representatives may modify their offers, in accordance with the program referred to in the previous article and subject to the Market Rules, when necessary to rationalize the availability of energy for a period.

The bids that the representatives of Electrical Central will perform in the Wholesale Electric Market will be based on the costs of these Central Electricity and Control Demand, which can be be less than these costs, in terms of the Market Rules. The Guaranteed Controllable Demand offers will be subject to the cap offers that set the Market Rules.

When included in the program referred to in the previous article, the representatives must base their offers on the opportunity costs resulting from this program, subject to the Market Rules.

The CRE may issue criteria for exempting Electrical Central and Controllable Demand that do not have a significant impact on the efficient operation of the Electricity Market. Wholesale of the obligations relating to its tenders as referred to in the preceding three paragraphs and its participation in the programme referred to in the previous Article.

Electricity Central representatives will record their cost and capacity parameters to CENACE. The Guaranteed Controllable Demand representatives will register their capabilities with CENACE. The CRE will require such representatives to provide information regarding the physical costs and capabilities of each Power Plant and the regarding the physical capabilities of the Guaranteed Controllable Demand, in order to verify the registered parameters. The CRE will monitor that the offers of the Electrical and Controllable Demand (s) Guaranteed to the Wholesale Electrical Market are consistent with their costs and capabilities, for which the CENACE will provide the CRE with the information and analysis that is required.

In the event of confirming material inconsistencies in costs and capabilities, the CRE will instruct the corrections to be made to the registered parameters and to the offers based on they, and instruct the CENACE to rectify the corresponding billing, issuing the respective statement of account. Where such billing requires the return of revenue or the payment of new costs, these operations shall proceed without prejudice to the application of the penalties to be incurred.

Members of the electrical sector are prohibited from carrying out any action or transaction that has the effect of interfering with the efficient operation of the Electricity Market. Wholesaler or distort its results. In the event of identifying such practices, the CRE will instruct CENACE to rectify the corresponding billing, issuing the respective statement of account, in order to reverse the monetary consequence of the identified transactions, without prejudice to the application of the sanctions to be applied. In severe cases, the CRE will instruct CENACE to restrict or suspend participation in the Wholesale Electrical Market.

The CRE will monitor the operation of the Wholesale Electrical Market and CENACE determinations to ensure the efficient operation of the Wholesale Electrical Market and compliance with the The Rules of the Market. In addition, the CRE will monitor the Market Rules to meet the objectives of this Law.

It is the inselectable faculty of the CRE to define terms for available cost-based offers of capabilities and to order corrections, corrections and application of sanctions This Article shall be without prejudice to the establishment of the CRE by independent experts or by a collegiate committee or other body to carry out the other functions of surveillance of the Wholesale Electrical Market. In no case shall the surveillance functions of the Wholesale Electrical Market be performed by those who participate in the administration or audit of CENACE, by the Market Participants or by those with a commercial relationship, assets or have corporate control rights over these.

Article 105.- Without prejudice to other practices established in the Federal Economic Competition Act, any agreement, arrangement or arrangement shall be considered to be monopolistic coordination between Market Participants with the intention or effect of restricting the efficient operation of the Wholesale Electrical Market. Where the Secretariat, the CRE, the CENACE or any other person detects such practices, it shall inform the Federal Economic Competition Commission to proceed in accordance with its powers.

When the Secretariat, the CRE, the CENACE or any other person considers that there are no conditions of effective competition in any market, it will request the Federal Competition Commission Economic undertaking to carry out the corresponding analysis so that, where appropriate, it orders the necessary measures to establish the conditions of free competition and competition.

Article 106.- The acquisitions that Federal Public Administration agencies and entities perform within the Wholesale Electrical Market and the auctions referred to in this Law will not be subject to either the Procurement, Leases and Services Act of the Public Sector, nor the Public Works and Services Act Related to the Mismas.

Chapter II

From the National Energy Control Center

Article 107.- The CENACE is a decentralized public body of the Federal Public Administration, with its own legal personality and its own patrimony, which has the responsibility of Operation of the National Electrical System, the operation of the Wholesale Electrical Market and the open and non-unduly discriminatory access to the National Transmission Network and the General Distribution Networks, as well as the other designated faculties in this Act and other applicable provisions.

Article 108.- CENACE is empowered to:

I.               Exercise the Operational Control of the National Electrical System;

II.              To determine the necessary acts to maintain the Safety of Dispatch, Reliability, Quality and Continuity of the National Electrical System and to be carried out by the Market Participants, Carriers and Distributors, subject to the Regulation and supervision of the CRE in such matters;

III.             Carry out the review, adjustment, updating, and issuance processes of the Market Operating Provisions, subject to the mechanisms and guidelines established by the CRE;

IV.            Operate the Wholesale Electrical Market under conditions that promote competition, efficiency and non-discrimination;

V.             Determine the allocation and dispatch of the Electrical Central, Controlable Demand, and import and export programs, to meet the demand for electrical energy in the Electrical System National;

VI.            Receive the offers and calculate the prices of electrical energy and Associated Products derived from the Wholesale Electrical Market, in accordance with the Market Rules;

VII.           Invoice, process or collect payments that correspond to the members of the electrical industry, in accordance with this Law, the Market Rules and other relevant provisions;

VIII.          Carry out auctions for the celebration of Electrical Coverage Contracts between the Generators and the representatives of the Freight Centers;

IX.            Prior authorization of the CRE, conduct auctions in order to acquire power when deemed necessary to ensure the reliability of the National Electrical System, and manage power procurement in emergency cases;

X.             Coordinate the programming of the maintenance of the Electrical Central that are represented by Generators in the Wholesale Electrical Market, as well as the elements of the National Transmission Network and the General Networks of Distribution corresponding to the Wholesale Electrical Market;

XI.            Formulate and update a program for the operation of Controllable Electrical and Controllable Demand that present limitations on the total energy that they can generate or stop consuming in a period, and calculate the opportunity cost with which they will be assigned and dispatched;

XII.           Take the record of costs and capabilities of the Electricity Central and the Controllable Demand capabilities and inform the CRE regarding the consistency between the offers to the Wholesale Electrical Market and the data registered;

XIII.          Determine the elements of the National Transmission Network and the General Distribution Networks that correspond to the Wholesale Electrical Market and determine the allocation of responsibilities and coordination procedures with the Carriers and Distributors;

XIV.          Formulate and propose to the Secretariat the programs for the extension and modernization of the National Transmission Network and the elements of the General Distribution Networks that correspond to the Wholesale Electrical Market;

XV.           Identify Market Participants that are beneficiaries of the extensions referred to in the previous paragraph;

XVI.          Propose to the CRE the criteria referred to in the second paragraph of Article 34 of this Law;

XVII.         Subject to the CRE's authorisation the general technical specifications required for the interconnection of new Electrical Central and the connection of new Load Centres and the other general technical specifications required;

XVIII.        When by the nature of a new Power Plant or Load Center it is necessary to establish specific characteristics of the required infrastructure, establish such characteristics for each particular case;

XIX.          Instruct the Carriers and Distributors to conclude the contract of interconnection or connection and the realization of the interconnection of the Electrical Central or the connection of the Cargo Centers to their networks;

XX.           Calculate the contributions that the interested parties will have to make for the construction of works, extensions and modifications of transmission and distribution when the costs are not recovered through the collection of the Fares Regulated and to grant the relevant Transmission Financial Rights;

XXI.          Administer the Transmission Financial Rights in terms of the Market Rules;

XXII.         Assess the technical convenience of the Particular Networks to be integrated into the National Transmission Network and the General Distribution Networks;

XXIII.        Develop and conduct training for Market Participants, authorities, and other people who require it;

XXIV.       Submit to the CRE's authorization the models of agreements and contracts it will hold with the Carriers, Distributors and Market Participants, among others;

XXV.        To conclude the agreements and contracts required for the operation of the Wholesale Electrical Market;

XXVI.       Require the necessary safeguards to ensure compliance with the obligations of Market Participants;

XXVII.      Restrict or suspend the participation in the Wholesale Electrical Market to those who incur serious breaches, in the terms of the Market Rules, and instruct the suspension of the service of the Qualified Users of the Market for non-compliance with its payment or guarantee obligations;

XXVIII.     Promote coordination mechanisms with the members of the electrical industry to maintain and restore the power supply of the electrical system in the event of accidents and contingencies;

XXIX.       Require information from the Market Participants required to perform their duties;

XXX.        Publish reports on the performance and evolution of the Wholesale Electrical Market with the periodicity and terms to be determined by the CRE;

XXXI.       Participate in advisory committees for the elaboration of standardisation projects on goods or services related to their object;

XXXII.      Maintain computer security and upgrade your systems that enable you to meet your goals;

XXXIII.     Coordinate activities with the bodies or authorities that are responsible for operating the markets and electrical systems abroad and, with the authorization of the Secretariat, conclude agreements with them, and

XXXIV.    The others that this and other legal systems trust in the matter.

Article 109.- CENACE will primarily develop its activities to ensure the operation of the National Electrical System in conditions of efficiency, quality, reliability, Continuity, security and sustainability.

Article 110.- The CENACE administration will be in charge of a Board of Directors and a Director General. The direction and strategic vision of CENACE will be the responsibility of its Board of Directors, which will have at least one third of independent directors.

The management, operation and execution of the functions of CENACE will be carried out exclusively by the Directorate General, for which it will enjoy autonomy.

In the advisory committees which, if any, the Board of Directors will take part in the participation of representatives of the electrical industry.

Article 111.- Independent counselors and CENACE workers should not have a conflict of interest, so they may not have a professional or professional relationship with others. Members of the electricity industry. CENACE workers who perform duties contained in Article 108 of this Law shall be deemed to be trusted.

Article 112.- The Secretariat, in coordination with the CRE, will constitute an evaluation committee in which a representative of each market participant modality will be counted. This evaluation committee will periodically sesionate and review the performance of CENACE and the Wholesale Electrical Market, so it will have the powers to have the necessary information and require the relevant clarifications, and will issue, with the periodicity that the committee itself determines, a public report containing the results of the evaluation and recommendations to the Board of Directors of CENACE. For the review of the methodologies applied by CENACE, the evaluation committee may rely on independent experts.

TITLE FOURTH

Provisions applicable to Electrical Industry Integrants

Chapter I

Of Universal Service Obligations

Article 113.- The Federal Government will promote the electrification of rural communities and marginalized urban areas. For this purpose, the Secretariat may coordinate with the federative entities and the municipalities.

The Secretariat will establish and supervise the administration of a Universal Electrical Service Fund, with the purpose of financing electrification actions in rural communities and marginalized urban areas, as well as the provision of efficient lamps and Basic Supply to End Users in conditions of marginalisation.

Article 114.- The Universal Electric Service Fund will be integrated by the revenue surplus resulting from the management of technical losses in the Wholesale Electrical Market, in the terms of the Market Rules, until the national electrification targets are met. Also, the Universal Electric Service Fund may receive donations from third parties to meet its objectives.

Funds that are not used in electrification projects will be reintegrated into CENACE for return to Market Participants in accordance with the Market Rules, without prejudice to the the funds received by third parties may be returned to their contributors.

Article 115.- Basic Services Distributors and Suppliers are required to install, maintain and maintain their infrastructure, as well as to provide the service distribution and the Basic Supply to rural communities and marginalized urban areas under the terms and conditions set by the Secretariat, exercising the resources allocated by the Universal Electrical Service Fund in line with the programs Extension and modernisation of the General Distribution Networks authorised by the Secretariat.

Article 116.- The Secretariat will establish policies and strategies to provide electricity to rural communities and marginalized urban areas at the lowest cost for the country, in congruence with the planned energy policy for the development of the electricity sector and promoting the use of the Clean Energy.

For the above effects, the Secretariat of Finance and Public Credit, Energy and Social Development will evaluate the convenience and, if necessary, will implement support programs. focused on providing adequate and timely electricity, at affordable prices, in rural areas and marginalized urban areas for groups of Basic Supply Users under economic conditions of vulnerability.

The CRE and the National Social Development Policy Assessment Board shall provide the technical support required for the purposes of this Article.

Chapter II

From Social Impact and Sustainable Development

Article 117.- The infrastructure projects of the public and private sectors in the electricity industry will address the principles of sustainability and respect for human rights. of the communities and peoples of the regions in which they are intended to be developed.

Article 118.- The Secretariat must inform stakeholders about the implementation of infrastructure projects in the electricity industry on the presence of social groups in the vulnerability situation in the areas in which the activities for the implementation of the projects will be carried out, in order to implement the necessary actions to safeguard their rights.

Article 119.- In order to take into account the interests and rights of indigenous communities and peoples in which projects of the electrical industry are developed, The Secretariat shall carry out the necessary consultation procedures and any other activities necessary for its safeguard, in coordination with the Secretariat of Government and the corresponding dependencies.

In such consultation procedures, the CRE, the productive enterprises of the State and its subsidiary and subsidiary companies, as well as individuals, may participate.

Article 120.- Those interested in obtaining permits or authorizations to develop projects in the electrical industry must submit an impact assessment to the Secretariat The social impact assessment must contain the identification, characterization, prediction and assessment of the social impacts that could arise from its activities, as well as the mitigation measures concerned.

The Secretariat will issue the resolutive and recommendations that correspond, in the terms of the regulations of this Law.

Chapter III

Of Clean Energy Obligations

Article 121.- The Secretariat will implement mechanisms to implement policy on the diversification of energy sources, energy security and the promotion of energy sources. Clean Energy. The Secretariat shall establish the obligations to acquire Certificates of Clean Energy and shall implement the other mechanisms required to comply with the policy in this field, and may conclude agreements to grant approval with the corresponding instruments of other jurisdictions.

Article 122.- The requirements to acquire Clean Energy Certificates will be established as a proportion of the total Electric Power consumed in the Load Centers.

Article 123.- The Suppliers, the Qualified Users of the Market and the End Users who are supplied by the isolated supply, as well as the holders of the Legacy Interconnection Contracts that include Load Centers, whether public or private, will be subject to compliance with the Clean Energy obligations under the terms set forth in this Law.

Article 124.- In the first quarter of each calendar year, the Secretariat will establish the requirements for the acquisition of Clean Energy Certificates to be met during the three years after the issuance of those requirements, and may lay down requirements for subsequent additional years. Once the requirements for a future year are set, they will not be reduced.

Article 125.- The applicable regulation will allow these certificates to be negotiable, encourage the conclusion of long-term Electrical Coverage Contracts that include Clean Energy Certificates and may allow the transfer of surplus or missing certificates between periods and establish charges for making such a move in order to promote price stability.

In turn, the regulation will allow the acquisition, circulation and purchase of the Clean Energy Certificates and the Electrical Coverage Contracts relating to them by people who do not are Market Participants.

Article 126.- For the purposes of Clean Energy Certificates obligations:

I.               The Secretariat shall establish the requirements for the acquisition of Clean Energy Certificates, which must be met by the Suppliers, the Qualified Users of the Market and the End Users who receive energy electricity for the isolated supply, as well as the holders of the Legacies Interconnection Contracts, associated with the consumption of the charging centres that represent or include;

II.              The Secretariat shall establish the criteria for granting it in favour of Exempt Generators and Generators that produce electric power from Clean Energy;

III.             The CRE will grant the corresponding Clean Energy Certificates, issue the regulation to validate their ownership and verify compliance with those obligations;

IV.            The Certificates of Clean Energy will be negotiable through the Wholesale Electrical Market and can be approved with instruments from other markets in terms of the conventions that the Secretariat holds, and

V.             The CRE will be able to establish measurement and reporting requirements related to the generation of Clean Energy by means of isolated supplies.

Article 127.- The issue of general provisions on Clean Energy Certificates is the responsibility of the CRE.

Article 128.- The CRE will create and maintain a Certificate Registry, which must have the registration of each certificate, as well as the information corresponding to its date of issue, validity, and owner history.

Only the last holder of the certificate in the Register may make use of it in order to credit the compliance with its Clean Energy requirements.

Article 129.- The Secretariat of the Environment and Natural Resources shall establish, through official Mexican rules and other applicable instruments or provisions, the emission reduction obligations relating to the electrical industry.

Chapter IV

From Permissions

Article 130.- The permits provided for in this Law will be granted by the CRE. To be granted, the interested parties must submit the corresponding application, the accreditation of the payment of rights or taking advantage of the terms that lay down the legal provisions of the matter, the information relating to their object social, legal, technical and financial capacity, and the description of the project in terms of the general provisions of the CRE.

Permissionaries must be natural or moral persons constituted under Mexican law.

Item 131.- Permissions, as the case may be, end:

I.               The expiration of the period provided for in the permit itself or of the extension granted, where appropriate;

II.              By the resignation of the holder, after fulfilling his obligations;

III.             By revocation determined by the CRE in the following cases:

a) For not starting the activities object of the permit within the deadlines that are set in the title concerned, except for the authorisation of the CRE for justified reasons;

b) For interrupting the permissive service without justified cause;

c) For engaging in unduly discriminatory practices to the detriment of users;

d) For violating approved rates;

e) For flouting Mexican official standards;

f) For not paying the rights, taking advantage or any other quota applicable to the permit, including the verification of the same;

g) For carrying out permitted activities under conditions other than those of the permit;

h) For missing the CENACE instructions regarding the Operating Control of the Electrical System National;

i) For activities or omissions that prevent the efficient operation of the System National Electrical;

j) For ceding, taxing, transferring or alienating the rights and obligations arising from the permits without prior notice to the CRE;

k) For arranging or manipulating the sale prices of electrical energy or products in any form Associates, without prejudice to the penalties that come under the Federal Economic Competition Act and this Act, or

l) For contravening the provisions of Article 19 of the General Law on National Goods;

IV.            When the permission object disappears;

V.             In case of dissolution, liquidation or bankruptcy of the holder, or

VI.            For the occurrence of any resolutive condition set on the permission.

The CRE will determine the origin of the revocation considering the seriousness of the infringement, the actions taken to correct it and the recidivism, in the terms defined in the Regulations of this Law.

The termination of the permit does not extinguish the obligations incurred by the holder during its lifetime.

Chapter V

Of Standardization, Normalization, Reliability, and Security

Article 132.- The Secretariat will establish the policy on efficiency, quality, reliability, continuity, security and sustainability in the National Electrical System, including the criteria for establishing the balance between these objectives.

The CRE will issue and implement the necessary regulation on efficiency, quality, reliability, continuity, safety and sustainability of the National Electrical System.

The CRE will regulate, monitor and execute the process of standardization and standardization of the obligations in terms of efficiency, quality, reliability, continuity, security and sustainability of the National Electrical System.

CENACE may issue technical specifications in such matters with the authorization of the CRE.

The Secretariat will regulate, monitor and execute the standardization and standardization process for the security of the End Users ' facilities.

Members of the electrical industry will not be able to apply different technical reference specifications to the regulation, standardization and standardisation that they issue or authorize. competent authorities.

The policy and regulation referred to in this Article shall be mandatory in the planning and operation of the National Electrical System.

Article 133.- To certify compliance with Mexican official standards, the verification units referred to in Article 33 of this Law must be accredited in the terms of the Federal Law of Metrology and Standardisation. For their part, the inspection units may certify compliance with technical specifications, specific characteristics of the required infrastructure and other standards. Such units must have the approval of the CRE.

Article 134.- The certification bodies, testing laboratories, verification units and inspection units performing their activities for the industry They shall observe the strict legal separation referred to in Article 8 of this Law.

Article 135.- The CENACE will request the authorization of the CRE to conduct auctions in order to acquire power when deemed necessary to ensure the reliability of the National Electrical System.

When, in the judgment of CENACE, an Electrical Central whose retirement has been programmed is necessary to ensure the reliability of the National Electrical System, the Generator that represents it be obliged to offer its power in the auction that will take place, based on the costs of the electric power station and the terms defined by the CRE.

The CRE will issue the general provisions for the auction and will be able to determine mechanisms by which the net costs of these contracts are shared among all Qualified suppliers and users, or who are charged to the suppliers or qualified users who, by failing to comply with their obligations of power, have caused the need, without prejudice to the penalties that result applicable.

The CRE will issue protocols for CENACE to manage power procurement in emergency cases; in such cases, the auctions referred to in the previous paragraph.

The terms to effect the interruption of the service in case the National Electrical System is not in a position to supply the totality of the electricity demand will be established in the Market Rules.

Article 136.- To protect the public's interests in relation to the Quality, Reliability, Continuity and Security of Electrical Supply, the CRE may issue or execute the following measures:

I.               Suspension of operations, jobs, or services;

II.              Securing and destroying objects;

III.             Unemployment or eviction of facilities, buildings and premises;

IV.            Closing, temporary or permanent, partial or total, of facilities;

V.             Provision of human and material resources to address emergency situations, and

VI.            Those that are established in other applicable laws.

The CRE may request other authorities, in the field of its competence, to apply additional or necessary security measures to implement the measures provided for in this Regulation. Article.

Security measures will be in place for the time strictly necessary to correct deficiencies or failures.

Chapter VI

Of Tariffs

Article 137.- The transmission, distribution, Basic Supply and Supply of Last Resource, as well as the operation of the CENACE, will be subject to the accounting guidelines established by the CRE, for which persons who develop such activities will be required to present the information that the CRE determines through administrative provisions of a general nature.

Article 138.- The CRE shall issue, by means of general administrative provisions, the methodologies for determining the calculation and adjustment of the Regulated Tariffs for the following services:

I.               Transmission;

II.              Distribution;

III.             The operation of the Basic Services Providers;

IV.            The CENACE operation, and

V.             Related Services not included in the Wholesale Electrical Market.

Recoverable revenue from the Basic Supply will include costs resulting from the Fares of the five preceding fractions, as well as the costs of electricity and electricity. Associated Products purchased to supply such service, including those purchased through the Electrical Coverage Contracts, provided such costs reflect Prudent Practices.

The CRE shall issue, by means of general administrative provisions, the methodologies for determining the calculation and adjustment of the maximum rates of the Last Suppliers Resource.

The maximum prices of the Last Resource Supply will allow the estimated income necessary to recover the costs resulting from the Fares of the fractions I, II, IV and V on the basis of the above, the maximum rates of the Suppliers of Last Resort and, provided they reflect the Prudent Practices, the costs of the electrical energy and the Associated Products acquired to supply the said service and, where appropriate, the Penalties for non-compliance with the acquisition of power, Certificates of Clean Energy or Electrical Coverage Contracts. In their absence, the maximum prices for the Last Resource Supply may be determined by competitive processes.

Article 139.- The CRE will apply the methodologies to determine the calculation and adjustment of the Regulated Tariffs, the maximum rates of the Last Resource Suppliers and the tariffs end of Basic Supply. The CRE will publish the calculation memories used to determine these rates and prices.

The Federal Executive may, by Agreement, determine a tariff setting mechanism other than the final rates referred to in the preceding paragraph for certain groups of Users of the Basic Supply, in which case the final collection shall make the final tariff determined by the CRE transparent.

Article 140.- The determination and application of the methodologies and rates referred to in the previous article must be aimed, among others:

I.               Promote the efficient development of the electricity industry, ensure the continuity of services, avoid undue discrimination, promote open access to the National Transmission Network and the General Networks of Distribution and protection of the interests of Market Participants and End Users;

II.              Determine Regulated Rates of the regulated transmission and distribution services that will allow the estimated revenue needed to recover the efficient operating, maintenance, financing and depreciation costs. applicable to the various forms of service, technical and non-technical losses in accordance with the standard determined by the CRE, the applicable taxes and a reasonable return, which shall not be guaranteed;

III.             Determine Regulated Rates for Basic Service Providers that will allow the estimated revenue needed to recover efficient operating, maintenance, financing, and depreciation costs applicable and reasonable profitability, which shall not be guaranteed;

IV.            Determine maximum rates of the Last Resource Suppliers that will allow you to obtain the estimated income necessary to recover the efficient operating costs, maintenance, financing and depreciation, taxes applicable and a reasonable return, which shall not be guaranteed, or by competitive processes;

V.             Allow CENACE to obtain revenue that reflects an efficient operation, and

VI.            Incentivize the efficient and sufficient provision of the Related Services not included in the Wholesale Electrical Market.

Article 141.- The CRE will be empowered to investigate the investments and other costs incurred by the Carriers, the Distributors, the Basic Services Providers, the Suppliers of Last Resource and CENACE, including the costs of shared services that the controlling companies assign to their units. The CRE will determine that costs or investments that are not efficient or that do not reflect Prudent Practices, as well as investments that were not implemented according to the programs, will not be recovered through the corresponding regulated tariffs. authorised by the Secretariat.

Article 142.- For the extension and modernization of the National Transmission Network and the General Distribution Networks, the CRE will determine the tariff methodologies according to the provisions that the effect issues, observing the Rules of the Market. The CRE may require CENACE to identify the Market Participants that benefit from the expansion and modernization projects of the National Transmission Network or the General Distribution Networks, in order to establish the tariff regulation that reflects the best allocation of projected costs between such participants and the rest of the electricity industry.

Article 143.- The determination and application of the regulated tariffs, as well as the provision of the services covered by them, may not be subject to the purchase of products or unnecessary services.

Article 144.- The CRE shall issue by general administrative provisions and apply the methodology for the calculation and adjustment of the Recoverable Supply Income Basic, as well as the methodology for calculation and adjustment of the Maximum Supply Prices of Last Resource, and will determine the objectives of efficient collection for the Basic Services Suppliers and for the Last Suppliers Resource.

Article 145.- The CRE will be empowered to investigate the costs of electrical energy and the Associated Products purchased by the Basic Services Providers and Suppliers of Last Resource, including those purchased through the Electrical Coverage Contracts. The CRE shall determine that costs that are not efficient or that do not reflect Prudent Practices are not recovered by the recoverable income or the maximum prices.

Article 146.- Carriers, Distributors, Basic Services Providers, and CENACE will be required to publish their rates on the terms that the CRE will establish, by means of administrative provisions of a general nature. The adjustment, modification and restructuring of the tariffs shall entail the automatic modification of the supply contracts which have been concluded.

Article 147.- The CRE will authorize, if necessary, the charges that the CENACE proposes to carry out studies of specific characteristics of the required infrastructure. and for the other components of the process of connection of the charging and interconnection centres of Electrical Central, as well as the other services that are required for the efficient operation of the National Electrical System.

Chapter VII

From Investments of State Productive Enterprises

Article 148.- For the purpose of the evaluation of the profitability resulting from investments by the productive enterprises of the State and its subsidiary production companies of the electricity sector, the Secretariat of Finance and Public Credit will determine the Return Objective according to each activity.

Article 149.- The Secretariat of Finance and Public Credit will establish methodologies to evaluate profitability and returns on capital in the results reported by the productive enterprises of the State and its subsidiary productive companies of the electrical industry. Its implementation by these companies will be monitored and, if appropriate, adjusted, by the Secretariat. The objective returns and the methodologies for evaluating them shall be independent of the tariff regulation of the CRE.

Article 150.- The production companies of the State and its subsidiary companies of the electrical industry will not be able to make direct investments in new works when, in the previous two years, they generate minor returns to the product of their Return Target for the value of their assets or incur financial insolvency that would require extraordinary adjustments to their tariff scheme or other transfers extraordinary.

Chapter VIII

From Intervention

Article 151.- When there are irregularities in the administration or operation of a permit, they put the Quality, Reliability, Continuity and Security of the Electricity supply, the Secretariat shall intervene with the purpose of the financial controller taking charge of the administration and temporary operation of the installations concerned. The financial controller shall have knowledge and experience in matters directly related to the activities of the electrical industry and shall be designated by the Secretary of Energy. The financial controller may rely on the production companies of the State which are members of the electrical industry or one of its subsidiary production companies or subsidiary undertakings.

Article 152.- The financial controller shall have full powers and all the powers required for the administration of the intervener and shall exercise its powers without making it subject to the managers, administrative bodies or proxies of the intervention permit.

The managers, councils or proxies of the Intervened Permissioner will be able to continue to meet regularly in order to learn about the issues that they are responsible for and to be informed by the financial controller on the operation and operations that you perform. The financial controller may quote the former with the purposes that he considers necessary or appropriate, and must observe the requirements and formalities required for the calls to establish the law of the matter and the statutes of the permit. intervened.

The references in this article to managers, administrative bodies or proxies shall include the shareholders ' assembly, the board of directors or the equivalent bodies. of the permissioner in question.

Article 153.- The appointment of the financial controller, as well as its replacement or revocation, must be entered in the public register of the trade that corresponds to the address of the (i) an intervention, without further formalities than the exhibition of the trade in such appointment, replacement or revocation.

Article 154.- The intervention will cease when the causes that motivated it disappear, which must be declared by the Secretariat, either on its own initiative or at the request of the person concerned.

Chapter IX

From the Requisa

Article 155.- In case of natural disaster, war, strike, serious disturbance of public order or when subject to imminent danger to national security, internal security the country, the national economy or the Continuity of Electricity Supply, the Federal Government will be able to make the requisition of the movable and immovable property necessary for the Electrical Supply and to have all this as it deems convenient. The requisition will be maintained while the conditions that prompted it remain.

Article 156.- The Federal Government, except in the case of war or international armed conflict, will compensate those affected by paying the damages to their real value. If there is no agreement on the amount of the compensation, the damages shall be determined by experts appointed by both parties and, in the case of damages, the average of the net income in the year preceding the requisition shall be taken as the basis. Each of the parties shall cover half of the costs arising from the assessment.

Chapter X

Of The Information

Article 157.- The principle of maximum advertising shall govern the information related to the business, economic, financial and industrial activities developed by the production companies of the State, its subsidiary production companies and subsidiary companies that carry out activities in the electrical industry. The financial information of the operations carried out by the productive companies of the State, its subsidiary production companies and subsidiary companies, in Mexico or abroad, shall be public.

The principle of maximum advertising shall also govern the procedures for the acquisition of goods or services, the rulings and awards which they derive and the contracts and annexes which are result of the same. Also, the costs, revenues and profit margins provided by the parties in the contracts that the production companies of the State, its subsidiary production companies and subsidiary companies, in Mexico or abroad, will celebrate, will be public. broken down into detail.

Article 158.- The members of the electrical industry, in terms of the provisions of this Law, will be obliged to provide the Secretariat, the CRE and the CENACE with all the information that they require for the performance of their functions, which must include the data to enable them to know and evaluate the performance of those, as well as that of the electrical industry in general. To this end, the Secretariat, the CRE and the CENACE, in the field of their respective attributions, may issue formats and requirements for data collection, in physical and electronic form, which must be used by the members of the industry. power, as well as other government bodies, entities and agencies.

The Secretariat and the CRE, within the scope of their respective powers, shall verify compliance with this Law, its regulations, the permits granted, and other applicable provisions. For this purpose, members of the electrical industry shall be obliged to allow verifiers to access their facilities and, in general, to grant them all the facilities they require to comply with their verification functions.

The members of the electrical industry are obliged to provide the information and documentation and to allow the practice of verification visits, inspection or surveillance, that is required or ordered by the competent authorities.

The authorities and the CENACE will protect the confidential or reserved information they receive from the members of the electrical industry and be used by themselves or their contractors. or external experts.

Article 159.- The Secretariat, the CRE and the CENACE will facilitate the transparency of information in the Wholesale Electrical Market, taking into account the public interest, integrity and efficient operation of such a market, economic competition and consumer protection.

The CRE will establish the modalities and minimum information to be made public by the members of the electrical industry, including reports on the performance and evolution of the Wholesale Electrical Market to be published by CENACE.

Also, the CRE, as well as the experts or the entity that the CRE establishes in terms of Article 104 of this Law, will issue own reports on the performance and evolution of the Electricity Market. Wholesale, and may require the information necessary for the monitoring of such a market.

The offers in the Wholesale Electrical Market will be published by CENACE within 60 calendar days of the day in question, subject to the terms defined by the CRE.

Article 160.- CENACE will make available to Market Participants within 7 calendar days of their determination:

I.               The complete models used in the calculation of the prices of the Wholesale Electrical Market, with the exception of the offers referred to in the previous Article;

II.              The capabilities and availability of the elements of the Electrical Central and the elements of the National Transmission Network and the elements of the General Distribution Networks that correspond to the Electricity Market Wholesaler, and

III.             The complete models used for the development of the programmes for the extension and modernisation of the National Transmission Network and the elements of the General Distribution Networks corresponding to the Electricity Market Wholesaler.

The Secretariat will determine user control criteria and procedures for access to this information, taking into account the objective of promoting transparency, competition and security.

Additionally, CENACE will make available to the applicant, within 7 calendar days following the day of its determination, the models and studies used to define the specific characteristics of the infrastructure required to perform the interconnection of an electrical power station or the connection of a load centre.

Article 161.- The Secretariat will establish a website, free of charge to the general public, in which they will be published and kept up to date:

I.               The contracts, agreements, annexes and agreements that modify the production companies of the State, its subsidiary companies or subsidiaries in Mexico or abroad to conclude with the Market Participants in relationship to any product included in the Wholesale Electrical Market;

II.              The contracts, agreements, annexes and agreements that modify the production companies of the State, its subsidiary companies or subsidiary companies in Mexico or abroad for the acquisition, disposition, marketing, transport, management or administration of fuels in relation to the electrical industry;

III.             The contracts, agreements, annexes and agreements amending that the production companies of the State, their subsidiary companies or subsidiary companies in Mexico or abroad celebrate for the construction, acquisition or operation of generation, transmission, distribution or marketing works, and

IV.            Other information to be determined by the Secretariat.

Non-confidential or confidential information contained in the contracts, conventions, annexes and amending conventions referred to in this Article shall not be considered as confidential information.

TITLE FIFTH

From Infractions to Law

Chapter I

From the Prevention and Sanction of Anti-Law Acts and Omissions

Article 162.- In the field of their respective powers, the Secretariat and the CRE shall be empowered to prevent, investigate, identify, report and, where appropriate, sanction the contractors, permissiones, public servants, as well as any natural or moral, public or private, national or foreign person involved in the energy sector when they perform acts or omissions that have as their object or direct consequence indirect influence on the decision-making of a public servant, staff or the members of the State's production companies in the electricity industry to obtain direct or indirect personal economic benefit.

Article 163.- Without prejudice to specific provisions on combating corruption, natural and moral persons, nationals or foreigners participating in the Procurement in the field of electricity shall be sanctioned when they make any or some of the following:

I.               Offer or give money or any other benefit to a public servant, staff or counselor of the productive enterprises of the State or to a third party who in any way intervenes in some or some of the acts within the the procurement procedure, in exchange for the fact that the public servant, staff or adviser undertakes or refrains from performing an act related to his or her duties or to other public servants, for the purpose of obtaining or maintaining an advantage, with independence of the receipt of money or a profit obtained;

II.              Perform any conduct or omission that has the object or effect of evading the established requirements or rules to obtain any type of procurement or to simulate the fulfillment of these;

III.             Intervene in your own name but in the interest of other persons who are prevented from participating in public procurement, in order to obtain, in whole or in part, the benefits arising from the procurement;

IV.            Make use of its influence or political power, real or fictitious, on any public servant, staff or advisors of the productive enterprises of the State, for the purpose of obtaining for itself or for a third a profit or advantage, regardless of the acceptance of the persons involved or the result obtained, or

V.             Breaches of ethics codes or institutional codes that result in undue benefits to themselves or to the agencies or to the companies for which they work.

Article 164.- The penalties for the conduct provided for in the preceding article shall be determined by the competent authorities, in accordance with the rules of procedure The fight against corruption.

Chapter II

Of Sanctions

Article 165.- Violations of the provisions of this Law, its Regulations or provisions emanating from it shall be sanctioned in accordance with the following:

I.               With a fine of two to ten percent of the gross revenue collected in the previous year by:

a) Refrain from performing any act that instructs CENACE, without justified cause;

b) Suspend the transmission or distribution service across the board, without justified cause;

c) Failure to comply with accounting, operational, functional or legal separation obligations;

d) Incompliance with restrictions on the transmission and misuse of inside information;

e) Failure to comply with obligations related to the interconnection of new Electrical Power Stations and the connection of the new Cargo Centers established in this Law, its Regulations, and the other applicable legal and administrative provisions;

f) Give start to the construction of transmission or distribution works without the authorization of the Secretariat;

g) Start building infrastructure works in the electrical industry without favorable resolution the Secretariat for the assessment of social impact;

h) Violating tariff regulation;

i) Failure to comply with general conditions for the provision of Electrical Supply, in a manner generalized;

j) Failure to comply with the general conditions for the provision of the transmission and distribution services, generalized manner;

k) Stop observing, in a serious manner in the judgment of the CRE, the provisions in the field of Quality, Reliability, Continuity and Security of the National Electrical System;

l) Perform activities in the electrical industry without the corresponding permit or registration;

m) Connect Electrical Central to the National Electrical System without the interconnection contract corresponding;

n) Apply different technical specifications to regulation, standardization and standardization issue the competent authorities;

o) Ceder, tax, transfer or dispose of rights arising from permits in contravention of the provided in this Law, and

p) Obtain, directly or indirectly, a permit from those provided for in this Law in contravention of the provided by the CRE;

II.              With a fine of fifty thousand to two hundred thousand minimum wages for:

(a) Refrain from timely providing the information required by the competent authority, the Secretary of Economy, CENACE, Market Participants or the public in the terms of this Law;

b) Perform programmable maintenance tasks to generation facilities that require permission, transmission or distribution, without authorisation from CENACE, where such tasks limit the operation of the facilities;

c) Incompliance with the Quality, Reliability, Continuity and Security provisions of the System National Electrical;

d) Do not make offers to the Wholesale Electrical Market under the terms of Article 104 of this Law or manipulate in any form the prices of electrical energy or Associated Products;

e) Negate or prevent access to authorized verifiers or inspectors to check that the meters and other facilities are operating in a proper manner and comply with applicable requirements;

f) Selling or purchasing electrical power or Associated Products, or holding Electrical Coverage Contracts, without being subject to the provisions of this Law;

g) Failure to comply with any of the obligations or conditions set in the permit title;

h) Stop observing the Market Rules and other general administrative provisions which issue the Secretariat or the CRE, and

i) Any other serious infringement in the CRE's judgment to the provisions of this Act, its Regulations and other applicable administrative provisions;

III.             With a fine of ten thousand to fifty thousand minimum wages for:

a) Suspend or order the suspension of the Electrical Supply to an End User, without justified cause;

b) Incompliance in particular cases with the general conditions for the provision of Electrical Supply;

c) Stop observing, in particular cases, the general conditions for the provision of services transmission and distribution;

d) Failure to comply with coverage obligations for Electrical Supply in communities rural and marginalized urban areas established by the Secretariat, except when due to insufficient funds dedicated to such purpose. This penalty will be applied for each End User affected by the breach;

e) Do not grant the facilities that are required for authorized verifiers or inspectors, and

f) Consuming electrical power through installations that alter or prevent normal operation of the instruments for measuring or controlling Electrical Supply;

IV.            With a fine of six to fifty minimum wages:

a) For each megawatt of non-compliance in the power acquisition, for each time that it subsidizes default;

b) For every megawatt-hour of non-compliance in the celebration of Electrical Coverage Contracts, and

c) For every megawatt-hour of non-compliance in the acquisition of Clean Energy Certificates;

V.             With a fine of up to one hundred minimum wages per megawatt-hour of consumption in the previous twelve months, to which you take any action or omission to evade or breach the requirements to register as a Qualified User;

VI.            With a fine of up to three times the amount of electricity consumed, as of the date the infringement was committed:

a) To whom you connect your Particular Networks to the National Electrical System or to another Particular Network for your power, without proper authorization and contract;

b) End User consuming electrical power through facilities that prevent, alter, or prevent power normal operation of the instruments for measuring, rating, invoicing or control of Electrical Supply;

c) To persons who permit, encourage, encourage or tolerate the activities referred to in the paragraph previous;

d) Who consumes electrical power without having entered into the respective contract;

e) To whom you use electrical energy in form or quantity that is not authorized by your contract supply.

The energy consumption that this fraction refers to will be determined by the CRE;

VII.           With a fine of up to twice the amount of the invoice generated by CENACE when a Market Participant fails to comply with Article 104 of this Law and it is required that CENACE make a refund or an additional charge, without prejudice to the fine referred to in point (d) of Part II of this Article, and

VIII.          With a fine of ten to twenty percent of the value of inputs acquired in non-compliance with the minimum percentages of national content referred to in Article 30 of this Law.

The repeat offender will be given a penalty equal to twice the one applied to it the first time. The infringer who incurs a sentence shall be subject to a penalty equal to three times the penalty applied for the first time, in addition to the temporary or permanent suspension of the service.

The imposition of the sanctions referred to in section IV of this Article does not release the End User from the obligation to pay the electricity consumed improperly.

Article 166.- The penalties referred to in the previous Article shall be imposed by the CRE, except those referred to in points (c) and (n) of section I, points (a), (e), (h) and (i) of Part II, and point (e) of section III, which shall be imposed by the Secretariat in the case of provisions issued by that dependency or of information or access required by that dependency, as well as points (f) and (g) of Part I, the point (d) of fraction III and fraction VIII, which would be imposed by the Secretariat.

The authorities will determine the origin and the amount of the penalties, taking into account the seriousness of the infringement, the capacity of the the offender, the recidivism, the commission of the fact that motivates it or any other element from which the gravity or levity of the act infringer can be inferred, including the actions taken to correct it. The authorities may also determine that acts carried out in different installations or periods are different acts.

In order to promote price stability in the Wholesale Electrical Market, authorities may establish fixed levels or fixed formulas for the determination of fines identified in the Section IV of the previous article, respecting the provisions of the preceding paragraph.

Prior to the instruction of the Secretariat and the CRE, the CENACE will charge the penalties that will be imposed, through the process of invoicing and collection of the Wholesale Electrical Market. The revenue collected from the recovery of these penalties shall be allocated to the Universal Electricity Service Fund.

Article 167.- Any other infringement of the provisions of this Law or its Regulations that are not expressly provided for in this Chapter shall be sanctioned with a fine of one thousand to ten a thousand minimum wages.

Article 168.- For the purposes of this Chapter, the minimum wage, the general daily minimum wage in force in the Federal District at the time of the payment, is defined as the minimum wage. violation.

Article 169.- The penalties referred to in this Chapter shall apply without prejudice to the resulting civil or criminal liability, or to the revocation that proceeds from the permit.

For the imposition of the penalties provided for in this Law, including the revocation of the permits, the provisions of the Federal Administrative Procedure Law will be in place.

TRANSIENT

First. This Decree shall enter into force on the day following its publication in the Official Journal of the Federation, with the exception of the provisions of the following Articles.

Second. With the exception referred to in the following paragraph, the Law of the Public Service of Electrical Energy, published in the Official Journal of the Federation on 22 December 1975, is repealed and the other provisions which are opposed to the This Decree.

Chapter II of the Law of the Public Service of Electrical Energy, as well as all provisions aimed at the organization, surveillance and operation of the Commission Federal Electricity, will continue to apply until as long as the new Law that has to regulate the organization of the Federal Commission of Electricity will not enter into force.

The permits and contracts for self-supply, cogeneration, independent production, small production, import, export and continuous own uses granted or processed under cover of The Law of the Public Service of Electric Power will continue to be governed by the terms established in the Law and the other provisions emanating from it, and in that it does not object to the above, by the provisions of the Law of the Industry Electrical and its transients.

Third. During the period of restructuring of the electrical industry, the Federal Electricity Commission and the National Energy Control Center (CENACE), as appropriate, continue to provide the National Electrical System's generation, transmission, distribution, marketing and operational control services in order to maintain the Continuity of Electrical Supply.

The Energy Secretariat will coordinate the restructuring of the electricity industry, define the deadlines for the restructuring period and establish the policies and actions required to drive the processes for implementation.

For the only time, the Energy Secretariat will issue the first Market Rules. These Rules shall include the Electrical Market Bases and the Market Operating Provisions that the Energy Secretariat determines. For the purposes of this issue, the Energy Secretariat shall observe the provisions of Title Third A of the Federal Law of Administrative Procedure.

The Energy Secretariat will exercise oversight of the Wholesale Electrical Market under the terms of Article 104 of the Law on Electrical Industry, with the technical support of the Commission Energy regulator, until the end of the first year of operations of the said market. At the end of that period, the surveillance powers shall be exercised by the Energy Regulatory Commission in accordance with Article 12 of the Law on Electrical Industry.

The Energy Secretariat will interpret the Law for administrative purposes during the period of restructuring of the electricity industry, in order to promote efficiency, quality, reliability, Continuity, security and sustainability of the National Electrical System during this period and to ensure the efficient and rational implementation of the National Electrical System.

The Energy Secretariat will declare the entry into operation of the Wholesale Electric Market. The provisions of the Electrical Industry Act requiring such a Market shall be in force from that entry into operation.

Fourth. The Federal Electricity Commission shall perform the accounting, operational, functional and legal separation corresponding to each of the activities of generation, transmission, distribution and marketing. The Energy Secretariat and the Energy Regulatory Commission, within the scope of its powers, shall establish the terms under which the Federal Electricity Commission shall carry out such separation, which shall be vertical among the different business and horizontal lines between the same line of business, as follows:

I. The generation, transmission, distribution, and marketing activities within the Federal Electricity Commission shall observe a strict vertical separation, which shall be legal;

II. The generation must observe a legal separation, from the horizontal point of view, in a number of different business units that encourages efficient operation of the sector and is subject to competition and free competition criteria in the sector; and

III. The distribution should observe a horizontal separation by region, which may be accounting, operational and functional or legal, in such a way as to enable the efficient operation of the sector to be encouraged and information to be provided for comparative analysis of performance and efficiency in operations.

The separation indicated in this article will be carried out with the authorized budget of the Federal Electricity Commission. The process will be carried out with the participation that corresponds to the Service of Administration and Disposal of Goods.

Fifth. At the latest within six months of the entry into force of this Decree, the Federal Executive Officer shall issue the Decree establishing the Center National of Energy Control (CENACE) as the Public Decentralized Public Administration of the Federal Public Administration sectorized in the Energy Secretariat. That Decree shall establish the organization, operation and powers of the said Centre, observing the provisions of the Law on the Electrical Industry.

The human, material and financial resources that the Federal Electricity Commission and the Service of Administration and the Management of Goods for the entry into force of this Decree. The Operational Control of the National Electrical System, for the definition of technical specifications and specific characteristics of the infrastructure required for the interconnection of Central Electrical and Cargo Centers and for the planning of the extension and modernisation of the National Transmission and Transmission Network Elements of the General Distribution Networks that correspond to the Wholesale Electrical Market, will be transferred to the National Energy Control Center (CENACE) in a period that will not exceed three months, counted from the issuance of the Decree establishing the National Energy Control Center, in order to constitute its patrimony and to comply with its object, in accordance with the determination of the Energy Secretariat. The transfer will include the resources of the National Energy Control Center of the Federal Electricity Commission including the National Center (CENAL), the National Alterno Center (CENALTE), the control areas of Mexicali, Hermosillo, Gómez Palacio, Monterrey, Guadalajara, Federal District, Puebla and Merida and the control centers of La Paz, and Santa Rosalía, as well as the Planning Coordination of the Programming Subdirection and the others to be determined by the Secretariat Energy.

During the transition period of the National Energy Control Center (CENACE), the Federal Electricity Commission will continue to carry out the Operating Control of the Electricity System. National and the other functions that the Law of the Electrical Industry assigns to the National Energy Control Center. For such purposes, it shall continue to use its human, material and financial resources, control centres and areas, systems and subsystems of such centres, which may not be used for other purposes.

During the period in which the transfer of the resources referred to in the previous two paragraphs is made and to ensure that the National Energy Control Center (CENACE) In the period mentioned above, the Director General of the Federal Electricity Commission will carry out the necessary actions to ensure that the National Energy Control Center of the Commission maintains the operational control of the National Electrical System with Continuity and Quality, ensuring compliance with the provided for in the Seventh Transitional Article of this Decree. The Energy Secretariat shall be empowered to issue the necessary provisions to implement the measures referred to in this Article.

The National Energy Control Center (CENACE) will give the Federal Electricity Commission the necessary support, for up to twelve months after its creation, to continue operating the Electricity Transmission and Distribution Public Service networks under conditions of Continuity, Efficiency and Safety.

Respecting at all times the rights of the workers, during the period between the date of entry into force of this Decree and the date of issue of the Decree by which the National Energy Control Center (CENACE) is created, the removal of the trust staff of the National Energy Control Center of the Federal Electricity Commission as well as the granting or revocation of licenses of its personnel, will be Exclusive right of the Governing Board of the Federal Electricity Commission. In that period, any adjustment to the salaries and benefits of the staff in question shall require the approval of the Governing Board of the Federal Electricity Commission.

Sixth. Without prejudice to the Legal Contracts for Basic Supply to be concluded in terms of Article Tenth Transitional Ninth, contracts concluded between the Federal Electricity Commission and third parties, in force or with contingent liabilities to the separation of the Federal Commission of Electricity referred to in the article Fourth Transitional of this Decree, will be transferred to the productive enterprises of the State, to the subsidiary productive enterprises, to the subsidiary companies of the or the National Energy Control Centre (CENACE), as appropriate, in the terms defined by the Energy Secretariat. Under no circumstances shall such transfer cause the termination of such contracts or the extinction of the obligations contained therein. The permits, authorizations, licenses, concessions and other instruments assigned to the Federal Electricity Commission upon the entry into force of this Decree shall be transferred in the terms defined by the Secretariat of Energy, preserving its effective.

Seventh. The Energy Regulatory Commission shall issue or authorize the models of contract resulting from the Law of the Electrical Industry within a period of nine months, counted from its entry into force.

Eighth. The National Energy Control Center (CENACE) will conclude the contracts and agreements required with the persons who request to be Market Participants and with the Carriers and the Distributors in a period that will not exceed three months counted from the issuance of the respective contracts or from the receipt of the corresponding request.

Ninth. The provisions of these transitional provisions shall not affect the rights of the active, retired and retired workers of the Federal Electricity Commission, which shall be respected in accordance with the provisions of Article 123 of the Treaty. Political Constitution of the United Mexican States and the Federal Labor Law.

Tenth. The permits granted in accordance with the Law that is repealed will be respected in their terms. The permits for self-supply, cogeneration, small production, independent production, import, export and continuous own uses will retain their original validity, and the holders of the same will carry out their activities in the terms established in the Law of the Public Service of Electric Power and the other provisions emanating from it and, in so far as it does not oppose the foregoing, by the provisions of the Law of the Electrical Industry and its transients.

The holders of the permits for self-supply, cogeneration, small production, independent production, export and continuous own uses will be able to request the modification of these permits for single generation permits in order to carry out their activities under the Law of the Electrical Industry. Modifications to these permits will be formalized by the will of the permissionaries. Those permits whose permits are modified in accordance with the provisions of this transitional period, may request and obtain, during the five years following the modification, the restoration of the conditions of these permits and of the Legacies concluded under cover of these, as they existed prior to the modification. The reestablishment of these conditions under no circumstances shall extend the original validity of the Legacies Interconnection Contracts, nor may it be carried out on more than one occasion.

From the entry into force of the Law of the Electrical Industry and prior to the entry into operation of the Wholesale Electric Market, it will be possible to import electrical energy and Associated Products in terms of the provisions issued by the Energy Regulatory Commission to regulate such transactions. From the entry into operation of the Wholesale Electrical Market, it will be possible to import electrical energy and Associated Products in the terms of the Law of the Electrical Industry.

Import and export permits issued prior to the entry into force of the Law on the Electrical Industry will serve to meet the requirements for authorization to refer to Articles 17 and 22 of that Law for Electrical Central and Cargo Centres included in them.

Tenth First. The Federal Electricity Commission or its units to which Electrical Central is assigned shall obtain the corresponding generation permits.

Tenth Second. Legacy Interconnection Contracts will not be extended once their validity has been completed. The instruments linked to the Legacies Pipeline Contracts may be updated under the conditions set out in the Legacy Interconnection Contracts themselves, provided that their validity does not exceed the term of the main contract.

When the Legacy Interconnection Contracts or their related instruments provide for the modification of their terms, such modifications shall be formalized without affecting the dates of validity of the Legacy Pipeline Contracts. Under the terms that are stipulated in the same Legacy Pipeline Contracts, the modifications may consist of:

I.               High, low, and modification of Load Centers, called charge points in those contracts;

II.              Sales of surpluses, and

III.             Backup service.

The instruments linked to the Legacies Interconnection Contracts will be respected in the terms of the Law of the Public Service of Electrical Energy until the end of the validity of the respective contracts, including the following:

I.               Self-provisioned power recognition;

II.              Portage stamp;

III.             Power Bank, and

IV.            The other conditions granted to generation projects with renewable energy and efficient cogeneration.

With respect to the Load Centers and the capacity of the Electrical Power Stations that are kept included in the Legacies Pipeline Contracts, the permissionaries will only be able to perform the transactions permitted by these contracts and the other provisions applicable to them, so they will not be required to comply with Article 104 of the Law of the Electrical Industry, and they will not be able to acquire or dispose of electrical energy or products Partners in the Wholesale Electrical Market or through the Participants of the Market.

With respect to the Load Centers and the capacity of the Electrical Power Stations that are kept included in the Legacies Pipeline Contracts:

I.               The holders will only be able to carry out the transactions contained in their Legacy Interconnection permits and Contracts, so they will not apply the rules referred to in the third paragraph of Article 8 of the Industry Law. Electrical;

II.              The provisions referred to in Article 19 of the Law on Electrical Industry shall not limit the activities referred to in the Permits and Interconnection Contracts;

III.             For the purposes of Articles 43, 64 and 98 of the Law on Electrical Industry and the consideration referred to in Article 25 of the Law on Electrical Industry, the holders of the Legacies Interconnection Contracts subject to the provisions of the respective permissions and the Legacies Pipeline Contracts, and

IV.            Article 48 of the Electrical Industry Act shall not apply to the holders of the Legacies Interconnection Contracts.

The support service provided for in the Legacies Pipeline Contracts will be administered by the National Energy Control Center (CENACE) subject to the tariffs established by the Energy Regulatory Commission. The Energy Secretariat will determine the other rights and obligations of the Legacies Pipeline Contracts to be assumed by the Federal Electricity Commission and the National Energy Control Center (CENACE). The Energy Regulatory Commission will update the corresponding calculation methodologies in order to respect the terms of the Legacies Pipeline Contracts.

In the terms of the Market Rules, you may receive the Basic Supply of the Load Centers that meet, in full, the following requirements:

I.               Be included in a Legacy Pipeline Contract;

II.              As of the date of entry into force of the Law of the Electrical Industry, they have a contract of supply of Public Service of Electric Power for the demand to be included in the Basic Supply;

III.             Do not be included in the Qualified Users registry, and

IV.            The Power Plants included in the Legacy Pipeline Contract have not been included in an interconnection contract concluded in the terms of the Electrical Industry Act.

The financial insufficiency or surplus that, if any, is generated by the maintenance of the Conditions of the Legacy Interconnection Contracts, will be distributed among all the Participants of the Market, in the terms of the Market Rules.

Tenth Third. Applications for self-supply, cogeneration, independent production, small production, import or export permits made prior to the entry into force of the Law of the Electrical Industry will be resolved in the Terms of the Law of the Public Power Service. Such permits shall be governed by the Law of the Public Power Service and the other provisions emanating from it and, in so far as it does not object to the foregoing, by the provisions of the Law of the Electrical Industry and its transients.

Permissioners that comply with any of the following fractions I or II and with the other requirements for concluding an interconnection contract may exercise the option to conclude a Legacy Interconnection Contract for up to 20 years:

I.               When the following circumstances are present:

a) Prior to the entry into force of the Law on Electrical Industry, the interested party has requested permission for the generation project and paid the corresponding rights or has obtained such permission;

b) The interested party notifies the Energy Regulatory Commission of its intention to continue the project, within 60 days of the entry into force of the Electrical Industry Act, and

(c) The data subject checks the Energy Regulatory Commission by 31 December 2016 at the latest, have agreed to the full financing of the project, and to have committed the acquisition of the principal and the equipment for the acquisition of fixed assets at least 30% of the total investment required in the project; the Commission Energy regulator will be able to extend this deadline in projects whose investment justify a longer term, or

II.              Where transmission capacity has been allocated to the data subject by means of its participation in an open season organised by the Energy Regulatory Commission, prior to the entry into force of the Law on the Electrical Industry and have complied with the required contributions and guarantees.

Legacy Interconnection contracts concluded under the previous I fraction I, as well as the rights to be held, will be cancelled in the following cases:

I.               When the Energy Regulatory Commission has resolved in a negative sense the permit application, or

II.              Where the interested party does not demonstrate to the Energy Regulatory Commission the commercial operation of the total capacity contemplated in the Legacy Interconnection Contract by 31 December 2019 at the latest. In particular cases, the Energy Regulatory Commission may extend this period for justified reasons.

Tenth Fourth. The holders or members of the holders of Legacy Interconnection Contracts will be able to enter into Market Participant contracts in the form of Generator to represent in the Wholesale Electrical Market to part or all the capacity of the Electrical Central included in the contracts of interconnection, subject to the Rules of the Market. The Load Centres referred to by such interconnection contracts may be included in the Qualified Users register.

The capacity of the Electrical Power Plants to be represented in the Wholesale Electrical Market should:

I.               Exclude from the Legacy Pipeline Contract and the permission to the partner, and

II.              To be included in a contract of interconnection concluded in the terms of the Law of the Electrical Industry, and in a Generation permit issued in terms of it.

Load Centers that are included in the Qualified User registry must:

I.               Exclude from the Legacy Pipeline Contract and the permission associated with it, and

II.              Include in a connection contract entered into in the terms of the Electrical Industry Act and in the Qualified User registry.

No charge or feasibility studies will be required to exclude generation capacity and Load Centers from the Legacy Pipeline Contracts and associated permissions and include the In the case of contracts for interconnection and generation permits in the terms of the Law of the Electrical Industry, provided that such modifications to those instruments are not combined with any other.

When Qualified Generators and Users conclude new interconnection contracts and connection contracts, they will be able to perform the transactions referred to in the Industry Law Electric. The Market Rules will establish the procedures required for the Electrical Power Stations to be able to operate part of their capacity in the framework of a Legacy Interconnection Contract and part of their capacity in the Wholesale Electrical Market.

Legacy Interconnection Contract holders or transmission agreements that include the transmission service to the date of the entry into force of the Electrical Industry Act will have the option of acquiring, at no cost, the Transmission Financial Rights corresponding to the historical uses of the Associated Load Centers, when concluding new connection contracts according to the models issued in the terms of the said Law. The Basic Services Providers will have the option of acquiring, at no cost, the Transmission Financial Rights that correspond to the historical uses of the Cargo Centers that represent, as long as these Cargo Centers are supply by the Basic Supply. The validity of such instruments shall not exceed the validity of the respective contract or agreement or the expected useful life of the Electrical Central (s) associated with them, in the terms of the Market Rules. The Market Rules may provide that, instead of receiving the Transmission Financial Rights, the holder receives the net income resulting from the sale of the same.

If the transmission service included in the Legacies Pipeline Contracts and the historical uses exceeds the physical capacity of the National Transmission Network and the General Networks of Distribution to the entry into force of the Electrical Industry Act, the National Energy Control Center (CENACE) will prorate the feasible amount of Transmission Financial Rights among the corresponding Market Participants.

Tenth Fifth. They can be included in the Qualified Users registry:

I.               The Load Centers included in the Legacy Pipeline Contracts to the date of entry into force of the Electrical Industry Act;

II.              The other Cargo Centers that report a demand equal to or greater than 3 Megawatts, during the first year of the Law of the Electrical Industry. This level will be reduced:

a) At least 2 Megawatts at the end of the first year of the Power Industry Act, and

b) At least 1 Megawatts at the end of the second year of the Power Industry Act, and

III.             The other Cargo Centres that comply with the respective provisions of the Energy Secretariat.

Tenth Sixth. The Load Centers that are included in the Legacies Pipeline Contracts will be exempt from the requirements of obtaining Certificates of Clean Energy, as long as the Electrical Power Stations referred to in the same contracts produce Electricity from Clean Energy in sufficient amount to cover the entire consumption of these Cargo Centers, in terms of the applicable criteria for the granting of Clean Energy Certificates. Clean Energy Certificates will not be awarded for the production of such Electrical Power Plants, even if their production exceeds the requirements of the Associated Load Centers.

The Cargo Centers and the capacity of the Electrical Central to be included in new interconnection contracts and connection contracts in the terms of the Law of the Electrical Industry be required to comply with the requirements relating to the Clean Energy Certificates and may receive such certificates in the terms of the Electrical Industry Act.

Tenth Seventh. The requests for interconnection and Transmission Service of Electrical Power Stations that will be governed by Legacies Pipeline Contracts will be evaluated in the terms established in the Law of the Public Service of Electric Power and the provisions emanating from the same.

Until the entry into force of the Decree of creation of the National Energy Control Center, the Federal Electricity Commission will perform the functions inherent in requests of interconnection and Transmission Service, including those relating to the connection of Load Centres, in a non-discriminatory manner and directly through the National Energy Control Centre.

In a period that will not exceed twenty working days following the entry into force of the Law of the Electrical Industry, the Federal Electricity Commission will provide the National Center Power Control the complete files related to the Electrical Central interconnect processes and the Load Centers connection.

The pres in relation to the Transmission Service requests validly received in the terms established in the Law of the Public Power Service, as well as the Decisions of the Federal Electricity Commission regarding requests for interconnection and transmission services, issued until the date of entry into force of the Decree of creation of the National Energy Control Center, will be respected. The National Energy Control Centre shall determine the time limit for the conclusion of the relevant conventions. In the terms of the Law of the Public Service of Electric Power and the provisions emanating from it, the pre-feasibility studies and the generation permits do not generate rights of precedence or obligations to carry out the projects studied.

The National Energy Control Center will establish the criteria for evaluating the requests for interconnection and Transmission Service of Electrical Power Stations that will be governed by Contracts for Interconnection Legacies, respecting the terms established in the Law of the Public Service of Electrical Energy and the provisions emanating from it. Those criteria shall be provided to the Energy Regulatory Commission, which shall be empowered to require, where appropriate, the amendment of the criteria.

As the respective Market Rules are issued, the National Energy Control Center will determine the criteria for the definition of technical specifications and characteristics. specific to the infrastructure required for the interconnection of the Electrical Power Stations and the connection of Cargo Centres which will be governed by the terms laid down in the Law of the Electrical Industry. Those criteria shall be provided to the Energy Regulatory Commission, which shall be empowered to require, where appropriate, the amendment of the criteria.

The operational bases, criteria, guidelines, guidelines, manuals, procedures and other provisions applicable to the connection of Load Centers shall remain in force until they are replaced, in their case, either by the National Energy Control Centre or by the Market Rules. The connection processes of the Loading Centres which are in the process of the entry into force of this Decree and those which are subsequently processed will be governed by the aforementioned provisions until they are replaced.

Tenth Eighth. Without prejudice to the provisions of the Tenth Transitional Ninth of this Decree, the contracts for independent production of energy, which cover the external central government, the agreements for the sale of surplus energy (energy) (a) the contracts for the sale of electricity for small producers and the proportional share of the contracts of the Federal Electricity Commission for the transport and supply of fuels associated with the foregoing which are in force for the separation of the Federal Electricity Commission referred to in the Fourth Transitional of this Decree shall be administered by the units of the Federal Electricity Commission that the Secretary of Energy designates.

The Secretariat shall also designate the units of the Federal Electricity Commission responsible for completing the bidding processes, concluding and administering the respective contracts and to supervise the construction of the Electrical Power Stations which have been included in the Federation's Government Budget for its development in investment modality conditional upon the entry into force of the Law on the Electrical Industry.

The procedures for the addition or replacement of the generation capacity set out in Section 12th of the Law of the Law of the Public Service of Electric Power apply for the implementation of the projects which, at the entry into force of this Decree, the Federal Electricity Commission has scheduled for inclusion in the Federation's Budget of 2015. The Federal Electricity Commission will be responsible for completing the bidding processes associated with such projects. The Programs of Works and Investments of the Electrical Sector that are approved by the Secretariat in the twelve months after the entry into force of the Law of the Electrical Industry will be used instead of the programs of enlargement and modernization of the National Transmission Network and of the General Distribution Networks referred to in that Law, until such time as the Energy Secretariat authorizes such programs.

During the period between the entry into force of the Law of the Electrical Industry and the start of operation of the Wholesale Electric Market, the Federal Electricity Commission and its Suppliers of Basic Services may conclude Electrical Coverage Contracts without requiring the auctions referred to in Article 53 of this Decree. The award of such contracts shall be determined by competitive processes, performed in the terms of the current regulations.

In no case will the contracts for independent production of energy that have been granted by Central External Power and its guarantees, concluded with the Federal Electricity Commission, will be terminated due to the entry into force of the Law of the Electrical Industry, the Law of the Federal Electricity Commission or the provisions emanating from them.

Legadas External Power Plants will be represented in the Wholesale Electric Market by the units of the Federal Electricity Commission that the Energy Secretariat will appoint, by the Contracted capabilities. These units shall be the holders of the electrical energy and associated products produced by the Central Electricity, in the terms of the respective contracts, up to the contracted capacity. The holders of such Electrical Power Stations shall be holders of the electrical energy and Associated Products which produce in excess of the amounts sold under the terms of the contracts in question, and may designate any Generator for their representation in the Wholesale Electrical Market.

The Certificates of Clean Energy that derive from the production of electric energy from Clean Energy in the External Central Banks will be allocated for the benefit of the Users of the Basic Supply for the duration of the corresponding contracts. Generators shall provide access to the information necessary for the granting of such certificates.

Tenth Ninth. Basic Services Providers will have the option of holding Legacy Contracts for Basic Supply under the Power Coverage Contracts figure, with prices based on the respective costs and contracts, covering the electrical energy and the Associated Products of each Legada Power Plant and each Legacy Central.

In order to minimize the costs of the Basic Supply, the Energy Secretariat, with the opinion of the Energy Regulatory Commission, will establish the terms, deadlines, criteria, bases and methodologies of the Legacy Contracts for Basic Supply and will determine the mechanisms of evaluation of the Legacy Contracts for Basic Supply. These mechanisms may be implemented in a coordinated or independent manner in the auctions referred to in Article 53 of the Law on Electrical Industry. The Basic Service Providers shall conclude the Basic Supply Legacy Contracts resulting from such mechanisms.

The Electrical Coverage Contracts referred to in this article will be allocated for the reduction of the final Basic Supply rates.

In the event of an early termination of an independent power production contract for reasons attributable to the Federal Electricity Commission, this will cover the difference between the prices Legacy Central contract and the cost to the Basic Services Suppliers to acquire the electric power and equivalent Associated Products, without prejudice to the corresponding responsibilities.

Twenty-one. The Specifications of the Supplier of the Federal Electricity Commission will preserve its validity, as the Energy Regulatory Commission issues new standards that replace them.

To ensure the efficient functioning of the electricity industry, the Energy Regulatory Commission will be able to exempt certification bodies, testing laboratories, units of verification and inspection units to be subject to the strict legal separation referred to in Article 8 of the Law of the Electrical Industry for a period not exceeding twelve months counted from the entry into force of the Law of the Industry Electrical.

Twenty First. As long as the regulatory and administrative provisions deriving from the Law on the Electrical Industry are issued, they will continue to be applied, in whatever way they do not oppose it, to those issued prior to their entry into force.

Twenty Second. The Chamber of Deputies will make the necessary budgetary forecasts so that the agencies and entities can comply with the privileges conferred on this Law.

Twenty-third.- The electrical industry will be subject to the regulation on the control and reduction of pollutant emissions that the authorities in the field establish. It will also be obliged to participate, along with other industries and broadcasting activities, in those market mechanisms that the environmental authorities will establish in order to mitigate the emission of pollutants of local, regional or local nature. or global.

Twenty-fourth.- The contracts, agreements or instruments of a legal nature similar to that referred to in this Law or which are related to it by the Ministry of Law, may not be provide for a clause or agreement of a will, which grants exclusive or unlawful preference for the benefit of any business, social or trade union organisation.

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TRANSIENT

FIRST.- This Decree shall enter into force on the day following that of its publication in the Official Journal of the Federation.

SECOND.- All provisions which are contrary to the provisions of this Decree shall be repealed.

Mexico, D. F., at 5 August 2014.-Dip. José González Morfin, President.-Sen. Raul Cervantes Andrade, President.-Dip. Javier Orozco Gómez, Secretary.-Sen. Lilia Guadalupe Merodio Reza, Secretary.-Rubicas."

In compliance with the provisions of Article 89 of the Political Constitution of the United Mexican States, and for its proper publication and observance, I hereby express my request for the Decree at the Federal Executive Branch, in Mexico City, Federal District, at 11 August of two thousand fourteen.- Enrique Peña Nieto.-Rubrias.-The Secretary of the Interior, Miguel Angel Osorio Chong.-Heading.