This amendment allows CFE to use its own plants to satisfy the requirement to purchase clean energy, thereby reducing the value of Clean Energy Certificates held by renewable energy private producers to the advantage of CFE. In addition to the above amendments that prioritize the dispatch of electricity of CFE over private competitors, the amendments to the LIE included Article 126(II), which adjusted the requirements for Clean Energy Certificates such that the issuance of Clean Energy Certificates no longer depend on the ownership or the commencement date of commercial operations of power generation facilities. The amendments include, among others: (1) Article 26, which requires that CENACE prioritize dispatch of power generated by plants "owned by State agencies, entities, or enterprises," (2) Article 4(VI), which "guarantee, in the first instance" electricity contracts of a type that only CFE can hold or enter into and (3) Articles 101 and 108(V), which call on CENACE to "determine the allocation and dispatch" of electricity based on undefined, broad criteria. These reforms constituted a reversal of the 2013 regulatory framework in Mexico, which sought to attract private investment in the Mexican electricity sector. The Decree introduced several amendments to the Electricity Industry Law ( Ley de Industria Eléctrica or LIE) to prioritize electricity produced by CFE over electricity produced by private producers in the dispatch of electricity to Mexico's electricity grid. On March 9, 2021, the Decreto por el que se reforman y adicionan diversas disposiciones de la Ley de la Industria Eléctrica (Decree Amending and Adding Various Provisions of the Electricity Industry Law) was published in Mexico's Federal Official Gazette and entered into force on March 10, 2021. Amendments to the Electricity Industry Law These measures appear to breach Mexico's commitments under CUSMA. The Government of Canada hereby requests consultations with the Government of Mexico pursuant to Articles 31.2 and 31.4 of the Canada-United States-Mexico Agreement (CUSMA) with respect to various measures of Mexico that favour its state-owned Comisión Federal de Electricidad (CFE), and negatively impact Canadian companies operating in Mexico and with investments in Mexico's electricity sector. Her Excellency Tatiana Clouthier Carrillo Request for consultations – Certain measures in the electricity sector Request for consultations – Certain Measures in the Electricity Sector.Canada-United States-Mexico Agreement (CUSMA).
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