CRE Issues Cross-Ownership Regulations for Hydrocarbons Sector

CRE has published agreement A/047/2022 in the Official Gazette of the Federation (DOF), setting forth general administrative provisions related to cross-ownership in the hydrocarbons sector in Mexico. The agreement focuses on competition, efficiency, and open access.

This agreement aims to define the procedure and necessary requirements for cross-ownership authorization among entities, as well as the methodology for evaluating its effects on competition, market efficiency, and effective open access.

Key provisions detail the administrative interpretation of cross-ownership, providing a clear guide on how cases will be analyzed and the potential effects such participation may have on the energy market. This includes defining key concepts, the methodology for market impact analysis, and criteria for authorization of such participations.

Moreover, the agreement revokes Agreement A/005/2016, updating and replacing previous regulations regarding cross-ownership authorization. It establishes a deadline of 60 business days after its enforcement for Economic Agents to update their situation regarding cross-ownership and submit the corresponding authorization request.

This document applies nationwide and is registered under number A/047/2022 in the Public Registry of the Commission. Its publication in the Official Gazette of the Federation ensures its official status and enforceability, entering into force on the next business day after its publication.

Procedures in progress at the time of these provisions entering into force will continue according to the previous agreement, with the option to restart the process under the new provisions. Finally, DOF informs about the right to challenge these provisions through an indirect amparo trial, thus guaranteeing a legal defense mechanism for those affected by this administrative act.