Mexico: Initiative of constitutional reform for the elimination of the Regulatory Energy Commission (CRE), the National Hydrocarbons Commission (CNH), among other constitutional agencies

28 Aug 2024    2 minute read

In brief

On 5 February 2024, the Mexican President Andrés Manuel López Obrador submitted before the House of Representatives (Cámara de Diputados) a constitutional reform initiative ("Reform Initiative") to amend, add and derogate certain provisions of the Mexican Constitution having as main scope the extinction of seven constitutional agencies. Such agencies are: (i) the Regulatory Energy Commission (CRE); (ii) the National Hydrocarbons Commission (CNH); (iii) the Mexican Antitrust Commission (COFECE); (iv) the Federal Telecommunications Institute (IFT); (v) the National Institute for Transparency, Access to the Information and Protection of Personal Data (INAI); (vi) the National Board for the Evaluation of the Social Development Policy (CONEVAL); and National Commission for the Continuous Improvement of Education (MEJOREDU).

Contents

In more detail

The Reform Initiative proposes that the functions of the above mentioned agencies would be transferred to the agencies of the Federal Executive Branch which originally had such functions.

This document will focus on the main implications that the Reform Initiative may trigger in the Coordinated Regulatory Agencies in Energy Matters (which are CRE and CNH, in terms of the Article 28 of the Mexican Constitution).
With respect to such agencies, the Reform Initiative proposes that their functions and obligations would be transferred to the Ministry of Energy (SENER).

For such purposes, the Reform Initiative proposes the extinction of CRE and CNH by eliminating the current reference to the Coordinated Regulatory Agencies in Energy Matters within Article 28 of the Mexican Constitution. Instead of that, the amended Article 28 would provide that the Federal Executive Branch will have the authorities to carry out the economic and technical regulation, as well as the sanctioning authority in energy and hydrocarbons matters, in the terms provided by the applicable laws, through the agency in charge to conduct and supervise the energy policy in México, which is SENER.

It is also proposed an amendment to Article 134 of the Mexican Constitution in the sense that public agencies will adjust its organic and occupational structures in accordance with rationality and austerity principles, and should eliminate all type of functional and organizational duplications. With this amendment, it would seem that the creation of new constitutional agencies would not be longer possible.

Pursuant to the transitory regime, this Reform Initiative would enter into force the day following its publication in the Federal Official Gazette. Also, the Mexican Congress would have a term of 90 calendar days as of the Reform is in full force and effect to make the adequations to the laws necessary to allow the Reform complies with its purpose. Such adequations should consider the elimination of agencies, administrative units or structures representing functions duplicity and the integration of such agencies in the centralized public administration.

Finally, transitory regime provides that those acts issued by CRE or CNH prior to the effectiveness of the amendments to the secondary law, shall have legal effects.

This Reform Initiative was approved in general by the Constitutional Points Commission of the House of Representatives (Cámara de Diputados) on 23 August 2024 and it is expected to be voted by the Mexican Congress within the month of September.

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Contact Information
Benjamin Torres-Barron
Partner
Mexico City
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benjamin.torres-barron@bakermckenzie.com
Carlos Maass-Porras
Associate
Juárez
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carlos.maass-porras@bakermckenzie.com

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