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2022 Mediation Writing Competition in Mexico | Weinstein International Foundation

Written by Santamarina + Steta en . Published in Events and Webinars.

The Weinstein International Foundation, in collaboration with Senior Fellows, Nuria González Martín and Fernando Navarro Sánchez, is proud to announce the Mediation Writing Competition in Mexico, co-sponsored by Santamarina + Steta and counting with the Institute of Legal Research of UNAM as a supporting organization. Law students currently enrolled in any law school in the country are invited to write a mediation memorandum on behalf of a client who is preparing to participate in the mediation of a litigated dispute.

Review the guidelines of participation, instructions, and criteria here: Mediation Writing Competition Guidelines

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Anti-Corruption Guide 2022 | Mexico

Written by Santamarina + Steta en . Published in Updates.

The World Law Group’s Anti-Corruption Guide 2022 explores anti-corruption laws in different jurisdictions around the world. Some of the questions it answers include: Are bribes to foreign government officials prohibited? Is corruption of private individuals punishable? Can a company be held liable for the acts of its intermediaries or third parties?

Ivan Szymanski contributes to the guide, which provides a clear overview of Mexico's anti-corruption jurisdiction.

Check out the guide here: http://ow.ly/jAxg50LkEnt

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USMCA: New challenges and risks for US and Canadian companies with operations in Mexico

Written by Santamarina + Steta en . Published in Events and Webinars.

The United States-Mexico-Canada Trade Agreement (USMCA) established an aggressive new mechanism designed to determine whether U.S.- and Canadian-owned Mexican operations have a bona fide relationship with their unions and provide workers with acceptable levels of pay, benefits, and working conditions. The consequences of failing to comply with these standards can be severe.

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Paola Morales is appointed new partner of Santamarina + Steta

Written by Santamarina + Steta en . Published in Announcements.

Committed to providing excellent legal advice, our main concern is to attract and develop the best legal professionals in line with our values. This year, we are pleased to announce the appointment of Paola Morales as a new partner of Santamarina + Steta, a position she will assume as of January 1, 2023.

In this new position, Paola will continue to strengthen the practice areas in which she specializes and will enhance the Firm's innovation, technology and diversity initiatives.

Paola has 23 years of professional experience specializing in the practice areas of TMT (telecommunications, media and technology), e-commerce and privacy and data protection.

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Americas Restructuring Review 2023 | Mexico: The Pandemic Aftermath

Written by Santamarina + Steta en . Published in Updates.

Mexico continues to face unprecedented times and historic challenges since the current administration took power in December 2018. While the pandemic appears to have receded and recovery has begun, the outlook remains challenging for businesses that coexist with policies undertaken under a leftist agenda that has done almost nothing when it comes to supporting businesses.

On the contrary, several sectors in which private investors play a significant role seem to be under permanent scrutiny and examination. The torrent of insolvency proceedings predicted two years ago seems to be holding on to a gradual and slow recovery, although new cases continue to emerge. While bankruptcy proceedings remain useful, they have not made a comeback as expected.

Check the article here.

Or read the full supplement at: Global Restructuring Review

What is the function of the Energy Regulatory Commission?

Shortlist for the appointment of the President Commissioner of the Energy Regulatory Commission

Written by Santamarina + Steta en . Published in Updates.

Executive Summary:

  • On January 4, 2022, the Federal Executive sent to the Permanent Commission the list of three people for the appointment of the President Commissioner of the Energy Regulatory Commission (“CRE”). 
  • The Law on Coordinated Regulatory Bodies in Energy Matters states that the President Commissioner of the CRE must be appointed from among the shortlist that the Federal Executive presents to the Senate and will serve as such for a period of seven years, concluding his/her term on December 31, 2029.
  • The Federal Executive presented the list of three candidates for President Commissioner of the CRE: Alfonso López Alvarado, Leopoldo Vicente Melchi García and Victor David Palacios Gutiérrez.

On January 4, 2022, the President of the Republic, through the Ministry of the Interior (the "Federal Executive"), sent to the Permanent Commission1 the shortlist of three people for the appointment of the President Commissioner of the Energy Regulatory Commission (“CRE”). 

The President Commissioner of the CRE would be approved and appointed by the Senate of the Republic once the three candidates submitted for consideration for the position by the Federal Executive appear. 

The Law on Coordinated Regulatory Bodies in Energy Matters states that the President Commissioner of the CRE must be appointed from among the shortlist that the Federal Executive presents to the Senate and will serve as such for a period of seven years, concluding his/her term on December 31, 2029.

For its part, Section VII of Article 78 of the Political Constitution of the United Mexican States states that, during the recesses of the Congress of the Union2, the Permanent Commission will ratify the appointments made by the Federal Executive of the members of the CRE.

In compliance with these precepts, and derived from the vacancy generated in the governing body of the CRE due to the expiration of the term of Leopoldo Vicente Melchi García as President Commissioner of the CRE, the Federal Executive saw fit to present the list with the following three candidates for President Commissioner of the CRE3: Alfonso Lopez Alvarado, Leopoldo Vicente Melchi Garcia and Victor David Palacios Gutierrez.

  1. Alfonso Lopez Alvarado

He is a Chemical Engineer from the Michoacana University of San Nicolás de Hidalgo, with a Master's Degree in Petrochemical and Refining Process Engineering from the Universidad Nacional Autónoma de México (“UNAM”) and a Master in Business Administration from the Instituto Tecnológico Autónomo de MéxicoSince 2019, he has been the General Director of Petroleum Contracts at the Ministry of Energy (“SENER”).

  1. Leopoldo Vicente Melchi Garcia

He is a Chemical Engineer from the Universidad Veracruzana, with diplomas in Administration from the Pan-American Institute of Senior Business Management, in Environmental Policy Instruments and Environmental Protection from the Universidad Autónoma Metropolitana and in Efficient Use of Water and Quality Control from UNAM. 

He served as President Commissioner of the CRE since 2019 and concluded his term as such on December 31, 2022. During his tenure as president of the CRE, Melchi has worked closely with SENER, and the process of issuing new permits to private participants in the oil and electricity sectors has been paused.

  1. Victor David Palacios Gutierrez

He holds a degree in Chemical Engineering from the Autonomous University of Puebla. Since 2022, he has been General Director of Natural Gas and Petrochemicals at SENER.

The importance of having the appointment of the President Commissioner of the CRE lies in the fact that he/she has specific powers, such as coordinating the work of the CRE in its capacity as the Coordinated Regulatory Body in Energy Matters; convening the sessions of the Governing Body; representing the Coordinated Regulatory Body in Energy Matters before government agencies, institutions, individuals and corporations, national and foreign, as well as acting as its legal representative; providing for the execution of the resolutions and agreements of the Governing Body; among others.

A relevant fact about the proposed candidacies is the fact that Alfonso López Alvarado and Víctor David Palacios Gutiérrez were candidates to occupy a position as CRE Commissioner in 2020, but they did not obtain enough votes from the Senate to be appointed. 

Given the above, it can be expected that Leopoldo Vicente Melchi García will repeat in office to give continuity to the public energy policy of the current administration, strengthening the productive companies of the State to the detriment of private participation in the energy sector.

In addition, and based on the profiles of the candidates, it is considered that the CRE will continue with a trend focused on strengthening the hydrocarbon sector, particularly the oil sector, since none of the candidates has significant experience in the electrical sector.

The candidates will be summoned to appear before the Legislature to determine their suitability to fill the position, and in the event that the candidates are not chosen from among these three candidates, because the majority of two thirds of the members present in the Assembly is not reached, the Federal Executive will send a new list of three candidates for consideration. If this is also rejected, the President of the Republic may directly appoint the President Commissioner of the CRE.

Finally, in relation to the election of CRE Commissioners, it should be noted that the CRE has an additional vacancy as commissioner, since Luis Guillermo Pineda Bernal ended his term on December 31, 2022.

1 The Permanent Commission is composed of 37 legislators, of which 19 are deputies and 18 are senators.
2 The Senate has been in recess since December 15, 2022, and will resume activities on January 31, 2023.
3 Arranged in strict alphabetical order based on their first surname.

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The Privacy, Data Protection and Cybersecurity Law Review | Mexico

Written by Santamarina + Steta en . Published in Updates.

The Law Reviews’ Privacy, Data Protection and Cybersecurity Guide provides an incisive overview of the legal and regulatory regimes governing data privacy and security. This edition focuses on the evolution of the sector and covers key areas such as the obligations of data processors, the rights of data subjects, data transfers and localisation, best practices to minimise cyber risk, public and private enforcement and a forward-looking outlook.

Paola Morales and Marcela Flores contributed to documenting the right to data protection in Mexico, as well as the regulatory framework and best practices to minimize risks in companies. They also offer their opinion on the modernization of data privacy laws in the country, which take into account the particularities of electronic commerce with respect to the protection of personal data.

Check out the guide here: The Privacy, Data Protection and Cybersecurity Law Review | Mexico

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CRE modifies transitional articles of NOM-001-CRE/SCFI-2019

Written by Santamarina + Steta en . Published in Updates.

January 2023 | printable version

Executive Summary

  • On January 13, 2023, the Energy Regulatory Commission published the Agreement modifying the transitional articles of the Mexican Official Standard NOM-001-CRE/SCFI-2019, Electric energy measurement systems - Meters and measurement transformers - Metrological specifications, test methods and procedure for conformity assessment.
  • The NOM specifies the period that manufacturers, Transporters and Distributors have for the installation of meters and measurement transformers.
  • It is important to remember that Transporters and Distributors must only use and install measuring instruments that have obtained a model or prototype approval in accordance with the provisions of the Federal Law on Metrology and Standardization and the corresponding Mexican Official Standard. 
  • The Agreement entered into force on 16 January 2023.

On January 13, 2023, the Energy Regulatory Commission (“CRE”) published on the portal of the Official Gazette of the Federation (“DOF”), the Agreement that modifies the transitional articles of the Mexican Official Standard NOM-001-CRE/SCFI-2019 (“NOM”), Electric energy measurement systems - Meters and measurement transformers - Metrological specifications, test methods and procedure for conformity assessment (“Agreement”)1.

Through this Agreement, the Second and Fifth Transitory Articles of the NOM were eliminated, which implies that the date of entry into force of the NOM changes, and instead of entering into force 365 days after its publication, it will enter into force the day after its publication, anticipating the assumptions that the measuring equipment must comply with as of January 2025.

In addition, this Agreement specifies the period of time that manufacturers, Transporters and2 and the Distributors3 for the installation of meters and measuring transformers.

It should be noted that Article 113 of the Regulations of the Electric Industry Law (“RLIE”) states that Transporters and Distributors must only use and install measuring instruments that have obtained a model or prototype approval in accordance with the provisions of the Federal Law on Metrology and Standardization and the corresponding Mexican official standard. They must also verify, through the then called accredited and approved verification units —now inspection units in accordance with the Electric Industry Law—, at least once every three years, the installed measuring instruments to ensure that they comply with the established accuracy.

Through the Agreement, the CRE makes the following modifications to the transitional articles of the NOM:

  • Meters and measuring transformers that do not have model or prototype approval and the certificate of compliance with the NOM may be purchased, marketed and used until January 1, 2025. On the other hand, meters and measuring transformers that have model or prototype approval and the certificate of compliance prior to January 1, 2025 may be purchased, marketed and used at any time.
  • Meters and measuring transformers, which must comply with the NOM, must be installed starting January 1, 2025. However, equipment that Transporters and Distributors prove to have acquired prior to January 1, 2025 may be installed and used during its useful life, as long as it maintains the metrological characteristics with which it was originally acquired.
  • Distributors must ensure that meters installed before January 1, 2025 for active and reactive energy measurements of medium voltage services with loads greater than or equal to 100 kW comply with the following accuracy values ​​within a maximum period of 60 months from the entry into force of the NOM:
+/- 1.0 % for meters of accuracy class 0.5 
+/- 0.4 % for meters of accuracy class 0.2

  • Transporters must ensure that meters installed prior to January 1, 2025, for active and reactive energy measurements of high voltage services comply with the following accuracy values ​​within a maximum period of 60 months from the entry into force of the NOM:
+/- 1.0 % for meters of accuracy class 0.5
+/- 0.4 % for meters of accuracy class 0.2 
  • Test reports prior to 1 January 2025 may be used for certification purposes, subject to technical review and validation of the results by a Certification Body.
  • Test reports issued prior to 1 January 2025 may be used for the purposes of approving the model or prototype, subject to technical review and validation by the National Metrology Centre.
  • Testing Laboratories, Certification Bodies and Inspection Units may now begin the process of accreditation and approval of the NOM.

The Agreement entered into force on 16 January 2023. To consult the original publication, please visit: https://www.dof.gob.mx/nota_detalle.php?codigo=5676875&fecha=13/01/2023#gsc.tab=0

1 The Agreement is available for consultation at: https://www.dof.gob.mx/nota_detalle.php?codigo=5676875&fecha=13/01/2023#gsc.tab=0
2 CFE Transmission.
3 CFE Distribution.

LogosCFE 500 Directory

Modification to the Organic Statute of CFE Generation V

Written by Santamarina + Steta en . Published in Updates.

January 2023 | printable version

Executive Summary

  • CFE Generación V is the CFE's Subsidiary Productive Company that carries out the generation activities covered by the independent energy production contracts signed by CFE, through the Legacy External Power Plants, as well as representing said Legacy External Power Plants in the Wholesale Electricity Market.
  • On January 16, 2023, the Federal Electricity Commission published the Agreement in which the Organic Statute of CFE Generación V is modified.
  • The Agreement grants new powers to the Sub-Management of Services and Financial Analysis of CFE Generación V, in matters of contracting goods and services.

CFE Generación V is the CFE's Subsidiary Productive Company whose purpose is to carry out the generation activities covered by the independent energy production contracts signed by CFE, through the Legacy External Power Plants, as well as to represent said Legacy External Power Plants in the Wholesale Electricity Market.

On January 16, 2023, the Federal Electricity Commission (“CFE”) published, in the Official Gazette of the Federation (“DOF”), the Agreement in which the modification is made to the Organic Statute of CFE Generación V, published on June 12, 2020 (“Agreement”).

This Agreement grants new powers to the Sub-Management of Financial Services and Analysis (“Sub-Management”) of CFE Generación V, in matters of contracting goods and services.

New Powers

The Organic Statute of CFE Generation V1 It indicates that the Sub-Management is made up of the Financial Analysis Department and the Administrative Services Department of said Subsidiary.

The original powers of said Sub-Management are provided for in Article 14.2 of the Organic Statute of CFE Generación V and, through the Agreement, eleven new powers are granted to said Sub-Management through the addition to Article 17 of the Organic Statute of CFE Generación V.

The new powers consist of the following:

  1. Preparation of needs studies related to the goods and services required by CFE Generación V to have good planning for the places where a project is intended to be located.
  2. Preparation of market conditions research for the goods and services required by CFE Generación V to review the importance of the market and have proper planning for it. 
  3. Review and validation of the information recorded by the CFE Generation V areas for the integration of the Annual Contracting Program before it is sent to the CFE Intelligence and Market Analysis Management.
  4. Report to the CFE Intelligence and Market Analysis Management the information registered by the CFE Generation V requesting areas in the electronic system determined for the integration of the Annual Contracting Program.
  5. Preparation of Market Conditions updates regarding the procurement of goods and services to be carried out by CFE Generación V.
  6. Design of the requirements related to the procedures for contracting goods and services that CFE Generación V will carry out.
  7. Determine the suitability of contract modifications developed by CFE Generación V, when it involves the replacement of goods.
  8. Dissemination of the rules applicable to market intelligence processes issued by the Board of Directors or the Corporate Administration Directorate of the CFE.
  9. Provide information to CFE Generación V and to the CFE Market Intelligence and Analysis Department on the general results of the Market Intelligence processes. These results support the creation of a global analysis of the operation's costs as well as the planning of market strategies. 
  10. Collaboration with the CFE's Market Intelligence and Analysis Department when conducting verifications on compliance with the rules applicable to market intelligence processes. 
  11. Any other assumption that is applicable according to the law. 

The powers previously granted to the Sub-Management, indicated in sections I to XII of article 17 of the Organic Statute of CFE Generación V, are not affected by this Agreement.

The Agreement entered into force on 17 January 2023. To consult the original publication, please visit: https://www.dof.gob.mx/nota_detalle.php?codigo=5677167&fecha=16/01/2023#gsc.tab=0

1. The Organic Statute of CFE Generation V was published in the DOF on June 12, 2020 and is available for consultation at: https://www.dof.gob.mx/nota_detalle.php?codigo=5594923&fecha=12/06/2020#gsc.tab=0

2. Article 14 of the Organic Statute of CFE Generación V sets out the general powers of all the Sub-Managements of CFE Generación V, including the Sub-Management that is the subject of this document.