Mexico Denies Claims of New Energy Plant Expropriation Powers

The Mexican government has denied claims published by Reforma suggesting that the state could expropriate private energy plants through the legal mechanism known as “temporary occupation.” In an official statement, the administration emphasized that the figure has existed since the 2014 Hydrocarbons Law and does not constitute expropriation or the loss of private property.

According to the government, temporary occupation is a measure designed to ensure national security and the continuity of energy services in extraordinary circumstances, such as war, natural disasters, or events that disrupt operations in the hydrocarbons sector. “It does not imply the loss of ownership or a definitive transfer of assets to the state,” the statement clarified.

Officials stressed that the current regulation merely reiterates what is already established in the law, aiming to provide legal certainty and transparency in how the measure would be applied. The process, they said, must be justified, limited in duration, and accompanied by fair compensation to the affected party.

The statement also highlighted that private operators retain the right to request the immediate termination of the temporary occupation once the event that prompted it has ceased.

“In conclusion, it is entirely false to suggest that temporary occupation allows for expropriations,” the government said. “It is a long-standing, exceptional mechanism intended to safeguard national security and protect end users in the event of disruptions to essential services.”