Overview

President Claudia Sheinbaum's administration has initiated significant reforms to reshape Mexico's energy sector. These reforms seek to increase state control and change regulations that have been in place for ten years. The October 2024 constitutional reform signaled a pivotal change by giving priority to the Federal Electricity Commission (CFE) and the national oil company Pemex over private parties, thereby reinforcing the state's dominant role in the energy sector.

The December 2024 constitutional reform transferred control of the energy sector from two independent regulators to the Mexican executive branch—another key change to the existing framework. Before this reform, the Energy Regulatory Commission (CRE) and the National Hydrocarbons Commission (CNH) regulated and oversaw the power, oil, and gas sectors in Mexico. Now, the main regulator is the National Energy Commission (CNE), which is part of the Ministry of Energy.

On March 18, 2025, Mexico enacted secondary legislation to implement the new regulatory framework for the energy sector. These new laws repealed energy laws that had been in place since 2014. All legal instruments, agreements, permits, and contracts obtained pursuant to the repealed laws will remain in force. However, rules applicable to the power and hydrocarbon markets will change.

Investors now face potential impacts on their projects, as these new regulatory changes will hinder free competition between the private sector and the state utility and national oil company. Mexico will continue to enact several new rules to implement its energy reform.

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Experience

Mayer Brown is a leading global law firm with extensive experience in Mexico. Clients turn to Mayer Brown for comprehensive legal services in energy and international arbitration, and our lawyers represent businesses in many of the world’s largest and most complex commercial and investment treaty arbitrations. Our team has the depth, strength, and knowledge to pursue clients’ interests in Mexico and help them deliver on commercial objectives. Our firm is well-equipped to handle disputes with cross-border elements, leveraging its global network and local connections to deliver tailored and effective solutions.