CRE, CNH to Be Dissolved; New Framework to Be Defined

The recent dissolution of Mexico's regulatory energy bodies, specifically CRE and CNH, is a significant development that has drawn considerable attention and concern from various sectors.

As explained by industry expert Ramón Massieu on Dec. 20, 2024, this reform, comes 11 years after the 2013 energy reform that established these bodies as autonomous regulatory agencies, marks a substantial shift in the country's energy regulation landscape.

The reform abolishes the status of CRE and CNH as Coordinated Regulatory Bodies in Energy Matters, a category that grants them operational, technical, and managerial autonomy from the Ministry of Energy (SENER). These agencies were initially set up to foster the development of energy markets independently from political influence, with commissioners ratified by the Senate serving staggered terms.

With the new constitutional amendment, CRE and CNH will revert to being part of SENER, which will now exercise the powers previously held by these agencies. This reorganization significantly reduces their autonomy and alters their operational framework. 

According to Massieu, "the constitutional reform constitutes a significant change in the sector. The new policy direction and the anticipated market functioning will significantly alter the role of regulatory bodies."

Following the publication of the reform, Congress has a 90-day period to enact secondary legislation that will define the new organizational structure and specific responsibilities of CRE and CNH. This legislation will be pivotal in determining whether these agencies will continue to have a role in economic and market regulation or if their functions will become strictly technical.

Massieu also emphasized the critical nature of this legislative period. "The secondary legislation will be fundamental for determining the specific organic nature that CRE and CNH will acquire, and for understanding the detailed powers that both agencies will exercise in the sector."