Mexico: Energy Regulatory Commission issues new Network Code

Effective as of 1 January 2022

In brief

On 31 December 2021, the Energy Regulatory Commission (CRE) published in the Mexican Official Gazette, resolution number RES/550/2021, through which it issued the General Administrative Provisions containing the criteria for efficiency, quality, reliability, continuity, safety and sustainability of the National Electric System: Network Code (New Network Code).

This New Network Code came into force as of 1 January 2022 and, consequently, repealed Resolution RES/151/2016, of 8 April 2016, that published the prior Network Code.

This New Network Code modifies the technical requirements whose compliance is mandatory for all users of the National Electric System, i.e. the National Energy Control Center, transporters, distributors, power plants, suppliers and, in particular, all load centers connected at medium and high tension, regardless of their consumption levels.


The New Network Code establishes the technical requirements to be met by connected load centers, or intending to connect, to the National Electric System (SEN) at medium or high tension1, in order to guarantee the efficiency, quality, reliability, continuity, safety and sustainability of the SEN.

As of 1 January 2022, obligated load centers (connected at medium and high tension) must initiate the necessary actions to ensure compliance with the technical requirements under the New Network Code. It is important to consider that prior to the publication of the New Network Code, the prior Network Code published under resolution RES/151/2016 on 8 April 2016, (now repealed) was in force, whose technical requirements became mandatory as of 8 April 2019.

The New Network Code distinguishes load centers connected at medium and high tension. For medium tension, it is subdivided into two categories, namely: (i) those which contracted demand is under 1 megawatt; and (ii) those whose contracted demand is equal or greater than 1 megawatt. This distinction entails different regulatory requirements applicable to each category, as well as the possibility of complying with the technical requirements modified under the New Network Code during a transition period, as of its publication date.

Possible penalties:

In accordance with the Electricity Industry Law, failure to comply with the New Network Code may be sanctioned with (i) a penalty of 2 to 10% of the gross income received in the previous year; or (ii) a penalty of fifty thousand to two hundred thousand minimum wages, as the case may be. In this sense, we consider that it is relevant to implement a compliance and/or risk mitigation strategy against these possible penalties (in case of non-compliance or in the process of developing the applicable work plan).

Recommended Actions

Strategy design: next steps

We suggest analyzing and evaluating, from a legal standpoint, possible strategies for each medium or high-tension load center, including those that compiled with the previous Network Code, now repealed. Further, we recommend analyzing and evaluating those load centers that have an ongoing or open administrative procedure before the CRE. 

We have prepared this Client Alert due to the importance of the issue, we suggest (i) to jointly review the technical-legal-regulatory status of the load centers for each user before the CRE, and (ii) to design a legal strategy to mitigate possible penalties, under the New Network Code. 

Our Firm is at your service for any questions or assistance regarding this matter. 


1Load centers connected at low tension are not obliged to comply with the New Network Code.


© 2022 Baker McKenzie. All rights reserved. Ownership: This site (Site) including all documentation and content (Content) is a Copyright © 2022 Baker & McKenzie. All rights reserved. Ownership: This documentation and content (Content) is a proprietary resource owned exclusively by Baker McKenzie (meaning Baker & McKenzie International and its member firms). The Content is protected under international copyright conventions. Use of this Content does not of itself create a contractual relationship, nor any attorney/client relationship, between Baker McKenzie and any person. Non-reliance and exclusion: All Content is for informational purposes only and may not reflect the most current legal and regulatory developments. All summaries of the laws, regulations and practice are subject to change. The Content is not offered as legal or professional advice for any specific matter. It is not intended to be a substitute for reference to (and compliance with) the detailed provisions of applicable laws, rules, regulations or forms. Legal advice should always be sought before taking any action or refraining from taking any action based on any Content. Baker McKenzie and the editors and the contributing authors do not guarantee the accuracy of the Content and expressly disclaim any and all liability to any person in respect of the consequences of anything done or permitted to be done or omitted to be done wholly or partly in reliance upon the whole or any part of the Content. The Content may contain links to external websites and external websites may link to the Content. Baker McKenzie is not responsible for the content or operation of any such external sites and disclaims all liability, howsoever occurring, in respect of the content or operation of any such external websites. Attorney Advertising: This Content may qualify as “Attorney Advertising” requiring notice in some jurisdictions. To the extent that this Content may qualify as Attorney Advertising, PRIOR RESULTS DO NOT GUARANTEE A SIMILAR OUTCOME. Reproduction: Reproduction of reasonable portions of the Content is permitted provided that (i) such reproductions are made available free of charge and for non-commercial purposes, (ii) such reproductions are properly attributed to Baker McKenzie, (iii) the portion of the Content being reproduced is not altered or made available in a manner that modifies the Content or presents the Content being reproduced in a false light and (iv) notice is made to the disclaimers included on the Content. The permission to re-copy does not allow for incorporation of any substantial portion of the Content in any work or publication, whether in hard copy, electronic or any other form or for commercial purposes.