ENERGY SECRETARY

Electrical Industry Law REGULATION.

On the sidelines a seal with the National Shield, which reads: United Mexican States.-Presidency of the Republic.

ENRIQUE PEÑA NIETO, President of the United Mexican States, exercising the power conferred on me by Article 89, part I of the Political Constitution of the United States Mexicans, and based on Articles 33, 34, 37, 41 and 43 Ter of the Organic Law of the Federal Public Administration, and 3, 9, 11, 12, 35, 77, 120, 131, 158, 165, 167 and other relative of the Law of the Electrical Industry, I have had to issue the following

ELECTRICAL INDUSTRY LAW REGULATION

TITLE FIRST

General Provisions

Chapter I

Object and Definitions

Article 1.- This Regulation aims to establish the provisions governing the planning and operational control of the National Electrical System, as well as the activities of the generation, transmission, distribution and marketing of the electrical industry; to ensure compliance with the obligations of the Public Service for Transmission and Distribution of Electrical and Universal Service Energy that propitiate the operation continuous, efficient and safe electrical industry.

The Secretariat and the CRE should promote the development and efficient operation of the Electrical Industry in the field of its powers.

The members of the Electrical Industry will have to observe the provisions that, in the field of their privileges, will be issued by the National Commission for the Efficient Use of Energy.

Article 2.- For the purposes of this Regulation, in addition to the definitions provided for in Article 3 of the Law on Electrical Industry, it shall be understood, in singular or plural, by:

I. High Tension: Electrical Supply voltage at levels greater than 35 kilovolts;

II. Contributions: Resources, in cash or in kind, that the Applicant delivers to the Carrier or Distributor, as the case may be, by the requested connection or interconnection and to benefit from specific works or extensions or modifications where the costs for its construction are not recovered through the collection of the regulated tariffs;

III. Low Tension: Electrical Supply voltage at levels equal to or less than a kilovolt;

IV. Power Industry Development & Operation: The One that allows for a lower total cost to the National Electrical System, subject to the regulatory, operational and environmental restrictions imposed by the competent authorities;

V. Fund: The Universal Electrical Service Fund;

VI. Institute: The Institute of National Assets Administration and Avaluos;

VII. Electrical Industry Integrators: CENACE, Carriers, Distributors, Generators, Marketers, Suppliers and Qualified Users of the Market, as well as Importers and Exporters;

VIII. Law: Law of the Electrical Industry;

IX. Media Tension: Electrical Supply voltage at levels greater than one kilovolt and less than or equal to 35 kilovolts, and

X. Requester: The Generator, Exempt Generator, End User, or the representative of these that presents a request to the Carrier or Distributor to execute a specific work or the extension or modification of the existing National Transmission Network or General Distribution Network facilities for the interconnection or connection.

The interpretation and application of this Regulation for administrative purposes is the responsibility of the Secretariat and the CRE, in the field of their respective powers.

Article 3.- For the purposes of Articles 23, 24 and 25 of the Law, isolated supply facilities may or may not be interconnected or permanently connected to the National Transmission Network and General Distribution Networks.

Any natural or moral person who acquires or produces electrical energy by means of isolated supplies, for their own consumption or for consumption within their facilities, shall have the character End User supplied by the isolated supply.

Article 4.- Carriers and Distributors may conclude agreements and contracts with the governments of the federal entities, municipalities, parastatals, or with In order to carry out acts related to the provision of the Public Service for the Transmission and Distribution of Electrical Energy in order to improve the use of its resources, as well as to simplify and facilitate the technical and administrative matters relating to those activities.

Chapter II

National Electrical System Planning and Control

Article 5.- For the development of the National Electrical System Development Program, at least:

I. The forecasts of the electricity demand and the prices of the primary inputs of the Industry Electrical;

II. The coordination of the indicative programs for the installation and withdrawal of Electrical Central with the development of the programmes for the extension and modernisation of the National Transmission Network and the General Distribution Networks;

III. The Reliability Policy established by the Secretariat;

IV. The indicative programmes for the installation and withdrawal of Electrical Power plants providing for the infrastructure necessary to ensure the reliability of the National Electrical System;

V. Coordination with the planning of the expansion program of the national pipeline network and the mechanisms for the promotion of Clean Energy, and

VI. The analysis cost integral benefit of the various alternatives of enlargement and modernization of the National Transmission Network and General Distribution Networks.

Article 6.- To carry out the activity referred to in the previous article, the Secretariat may rely on public or private institutions, as long as they are not Market participants, Carriers or Distributors.

Article 7.- Indicative programs for the installation and removal of Electrical Central will not be a requirement for the installation or withdrawal of Electrical Central, and will not generate the the right to obtain an authorisation, permit, right or guarantee of economic or financial results expected for the Electrical Central which is installed or intended to be installed in accordance with those programmes.

Article 8.- Without prejudice to the information that the Secretariat, the CRE or the CENACE requires them at any time, the Carriers and Distributors are required to deliver to the Secretary, CRE and CENACE, during the first quarter of each year, a detailed report of the advances in the works of expansion or modernization of the Electrical Network, including the imponderables that could cause a delay.

Article 9.- In the elaboration of the programs for the extension and modernization of the National Transmission Network and the General Network of Distribution, mechanisms will be incorporated for know the opinion of the Market Participants and those interested in developing electrical infrastructure projects in the terms determined by the Secretariat. The elaboration of the programs will seek to minimize the costs of providing the service, reducing congestion costs, encouraging an efficient expansion of the generation, and considering the criteria of Quality, Reliability, Continuity and security of the network. During this process, account must also be taken of the previous programmes, the works and investments that are being implemented and the following:

I. The programs will be elaborated annually and will have a projection of fifteen years;

II. The CENACE or the Distributors, as appropriate in accordance with Article 14 of the Law, will propose to the Secretariat and to the CRE the programmes within the month of February each year, without prejudice to the possibility of presenting special programmes in other months in order to advance the start of priority projects;

III. The CRE shall issue its opinion to the Secretariat within 30 working days from the date of departure. of the receipt of the programs;

IV. The Secretariat, if applicable, shall authorize the programs within thirty working days counted from the receipt of the opinion of the CRE, and

V. The programs referred to in this article should be published on the electronic portal of the Secretariat no later than 10 working days after authorisation.

Once the programs referred to in this article are authorized, the Secretariat will publish the National Electrical System Development Program in May of each year.

Article 10.- The CRE will establish in the Electrical Market Bases, the criteria to be observed by the CENACE in the auctions it will carry out to acquire power refers to Article 135 of the Law, including coordination with planning processes to ensure the reliability of the National Electrical System.

In such auctions, the technology that provides the technical solution required by CENACE cannot be limited.

Article 11.- The power auctions referred to in the previous article will be subject to the following:

I. The CENACE will have to prepare the preliminary auction bases that will contain at least the next:

a) The power to auction;

b) Technical requirements to ensure reliability;

c) The specifications for the presentation of the economic proposal;

d) The evaluation methodology of the participants in the auction procedure;

e) The contract model, and

f) The deadlines and stages of the auction procedure;

II. The CENACE should publish the preliminary basis on its electronic page for a minimum period of time ten business days prior to the date of the auction, for the purpose of receiving comments;

III. The CENACE will take into account the comments received and will incorporate those it deems relevant;

IV. The CRE will evaluate and, if appropriate, approve the auction bases within thirty days business, and

V. Between the date of publication of the call and the act of receipt of proposals and opening of (a) technical tenders must be provided by a period determined by CENACE, which shall not be longer than 90 days for the interested parties to carry out the technical, financial and economic studies necessary to integrate their proposals; Clarification boards.

Article 12.- CENACE will be able to incorporate, in the Market Operating Provisions, technical aspects of the Services to ensure Quality, Continuity, Reliability and Safety in the National Electrical System.

Article 13.- The CRE may issue general administrative provisions on Intelligent Electrical Networks, considering aspects of graduality in its implementation and the impact on the rates to End Users, in accordance with the policy on electricity established by the Secretariat.

Article 14.- The Secretariat will determine for each extension and modernization project of the National Transmission Network, within thirty days after the publication of the National Electrical System Development Program:

I. the Carrier that will perform the project;

II. The formation, if any, of an association or the conclusion of a contract to carry out the project in question, in terms of Article 31 of the Law, and

III. The general guidelines to which the call for the formation of an association will be held contract, as referred to in Article 32 of the Law.

In the determination referred to in this article, the Secretariat shall ensure that the projects are developed under the principle of lower total cost for the National Electrical System, subject to the applicable provisions on quality, reliability, continuity and safety. You may also consider the technical and financial capacity of the Electrical Industry Integrants, as well as the historical results of similar projects.

As a general rule, the works required for the expansion of the transmission capacity will be carried out through competitive processes, which must be carried out under the principles of of honesty, transparency, maximum publicity, equality, competitiveness, simplicity and that they are expeditious.

In either case, these processes will incorporate at least the following elements:

I. The application of conditions of equality and transparency among all participants;

II. The establishment of the general requirements of open competition bases;

III. The objective and measurable evaluation criteria, and

IV. Establish cases where the convener will refrain from considering proposals or concluding contracts.

When the Secretariat has instructed the Carrier to carry out the project, it must submit, within thirty days, a proposal of the bases of the competitive process, for authorization.

Article 15.- In contracts and partnerships for the Public Power Transmission and Distribution Service, it is not possible to stipulate that the payments made in such contracts are determined in Local marginal pricing function, or its components of energy, loss or congestion. However, penalties and bonuses applicable for the losses and unavailability of the infrastructure included in the contract or association that are attributable to the Carrier or Distributor, if they may consider the marginal prices Local, including their energy components, losses or congestion.

Chapter III

From Permissions and Authorizations

Article 16.- Rewant of permission granted by the CRE, Electrical Central with capacity equal to or greater than 0.5 MW, as well as those represented by a Generator in the Wholesale Electrical Market, with independence of their capacity, except those intended exclusively for their own use in emergencies or interruptions in electricity supply. For the purposes of the above, the net capacity of an electrical power station to be made available to the National Electrical System shall be considered.

In order for the Exempt Generators to be able to sell electric power in the Wholesale Electrical Market without the intermediation of a Supplier they will have to request permission from the CRE. The immediate consequence of granting permission is the change of nature of the Exempt Generator in Generator.

The Market Participants in Supplier Mode must have the corresponding permission of the CRE. Market Participants in Non-Supplier Marketer Mode should be included in the corresponding CRE record. In Market Participant contracts in Marketer mode, either the Supplier mode or the Non-Supplier Marketer mode will be designated concurrently.

Article 17.- The generation permit shall take the necessary measures to comply with the Mexican official standards and other mandatory specifications and assume the risks arising from any circumstance that may prevent or modify the operating conditions of the Power Plant and the availability of power thereof.

Article 18.- A permit granted by the CRE is required to provide the Electrical Supply service to the End Users, or to represent the Exempt Generators in the Wholesale Electrical Market.

The CRE will establish, by means of general administrative provisions, the general conditions through which the activities of Electrical Supply will be developed under the Basic Supply, Qualified Supply and Supply of Last Resource, in terms of Article 50 of the Act and Chapter II of Title II of this Regulation, as well as the requirements for the granting of the respective permits.

Article 19.- The import and export of the products referred to in Article 96, fraction IV of the Law, may be carried out in the terms of that Law, and other legal provisions applicable, by the Generators and Suppliers that have Generation or Supply permission granted by the CRE and by the Non-Supplier Dealers and the Qualified Users included in the corresponding register of the CRE.

The CRE shall establish, by means of general administrative provisions, the general conditions of the activities referred to in the preceding paragraph under the following modalities:

I. For isolated slaughter on national territory;

II.           By means of an Electrical Central located abroad exclusively connected to the National Electrical System for a period determined by the CRE, and

III. Other import and export activities shall not require authorization and shall be subject to established in the Market Rules.

Article 20.- Electricity generation and supply permits and import and export authorizations shall be valid for up to thirty years. Permits and authorisations shall be granted to all persons who comply with the requirements laid down in this Regulation and in the general administrative provisions which have the effect of issuing the CRE.

Article 21.- Applications for permits and authorizations, as well as their modifications, shall be submitted to the CRE in accordance with the formats it establishes and shall contain, in addition to the requirements set out in Article 130 of the Act, the following data:

I. Name or name or social reason and tax address of the person concerned;

II. Home to hear and receive notifications;

III. Name of the legal representative, if any;

IV. Type of permission or authorization that you request;

V. For generation permissions:

a) Location of the Power Station;

b) Estimated annual capacity and generation of the Power Station, and

c) Type of technology and, where applicable, the primary fuel;

VI. For import and export authorizations:

a) Import mode, in terms of the second paragraph of Article 19 of this Regulation;

b) Estimated amount of power or power to import or export, and

c) Point of pipeline in which you intend to import or export, and

VII. For Electrical Supply Permissions:

a) Provisioning mode;

b) Demand, users, and estimated maximum power sales, and

c) Zones in which provisioning will be offered.

Article 22.- With the permit or authorization request referred to in the previous article, at least the following information shall be provided:

I. The legal personality and existence, if any, of the person concerned;

II. The personality and faculties of the legal representative;

III. The object's social object, if it is a moral person;

IV. On the technical and financial capacity of stakeholders, in terms of the CRE in administrative provisions of a general nature which for the purpose of issue;

V. The proof of payment of rights or availments, as the case may be, and

VI. Dealing with generation permissions, the estimated start and end dates of the works respective, including the estimated date of entry into service considering, where applicable, the successive stages, and the estimated amount of the cost of the works.

Article 23.- The procedure for evaluating the application submitted to the CRE and, where appropriate, the granting of the permit or authorization and its modifications shall be carried out as follows:

I. The admission to processing of the application will be determined within 15 days of the reception of the same. After that time limit without any notification or requirement, the application shall be accepted. If, within the time limit, the omission of any requirement is determined, the applicant shall be required to remedy the missing within the ten working days following the notification. If the applicant does not dislodge the requirement within the period referred to, the application shall be rejected;

II. Once the application is accepted, the CRE will carry out the analysis and evaluation of the application, having a period of sixty days to resolve the conduct. Applications received will be posted on the CRE's e-page, observing what is established in the Federal Law on Transparency and Access to Government Public Information;

III. For the first twenty working days of the period referred to in the previous fraction, it may be to prevent the person concerned from making any omission or deficiency in the information submitted in his application within 30 working days of the date of notification of the notification; the prevention, the same shall be discarded;

In the event that prevention is done in time, the deadline for the CRE to resolve the procedure suspend and resume from the immediate working day following the day on which the person concerned has removed the prevention;

IV. At any time in the evaluation procedure, you can:

a) Require the data subject to the additional information deemed necessary to resolve the granting of the permission under Article 130 of the Act;

b) Conduct investigations;

c) Gathering information from other sources;

d) Consultations with federal, state, municipal, Federal District, and organ authorities political-administrative of their territorial demarcations;

e) Celebrate hearings and,

f) Perform, in general, any action deemed necessary to resolve the grant of the permit or authorization;

V. The information submitted voluntarily by the data subject, other than that indicated in fractions III and IV of this an article, may be considered by the CRE when resolving the application, provided that such information is submitted up to 20 days before the end of the assessment period;

VI. Once the evaluation is done the CRE may grant or deny permission or authorization, and

VII. When the permit covers activities within the meaning of Article 118 of the Law, if the person concerned does not presentation of the social impact assessment referred to in Article 120 of the Law, before the end of the period referred to in paragraph V of this Article, the CRE shall not grant the corresponding permit or authorisation.

In case of rejection of the application or refusal of the permit or authorization, the rights of the person concerned shall be saved to submit a new application.

Article 24.- When the data subject is present with additional information that is intended to modify the permit or authorization request and involve a new evaluation process by the CRE, require the withdrawal of the original application and the initiation of a new application, subject to payment of the corresponding rights or availments. If the person concerned does not desist, the assessment of the application shall be continued on the terms originally proposed.

Article 25.- The granting of a permit or authorization does not imply any approval for the interconnection or connection to the National Electrical System of Electrical Central, extensions of the above, which must be dealt with by CENACE.

Article 26.- Generation permissions will contain at least the following data:

I. Name or name or social reason and address of the permit;

II. Site location;

III.          Program of work, if any;

IV. Start and termination dates of the respective works, including the date of entry into service and considering, in your case, the successive stages;

V. Permission Vigency;

VI. Facilities Description;

VII. Right to receive Certificates of Clean Energy, if any;

VIII. Power generation and estimated annual power generation capacity;

IX. Permissive activities, and

X. Obligations of the holder of the permit, causes, and deadlines for termination of the permit.

Article 27.- The authorizations for the import and export of electrical energy will contain, at least, the following data:

I. Name or name or social reason and address of the importer and exporter;

II. Import and export mode;

III. Delivery or receiving point;

IV. Authorization Vigency;

V. Deadline in which the authorized importer commits to remain connected to the National Electrical System, for the case of the import mode referred to in the second paragraph of Article 19, second paragraph, of this Regulation, and

VI. Obligations of the holder of the authorization, causes, and deadlines for termination of the authorization.

Article 28.- Electrical Supply permissions will contain at least the following data:

I. Name or name or social reason and address of the permit;

II. Provisioning mode;

III. Zones where provisioning will be provided;

IV. Permission Vigency;

V. General Conditions for the Provision of Electrical Supply, and

VI. Obligations of the holder of the permit, causes, and deadlines for termination of the permit.

Article 29.- Electricity generation and supply permits granted by the CRE may be modified upon payment of the corresponding rights or availments.

Article 30.- The change of mode in the Electrical Supply permissions constitutes a different activity so it requires the granting of a new permit by the CRE.

Article 31.- The granting of permits and authorizations granted by the CRE shall not be conditional upon the fulfilment of the obligations or the obtaining of the authorizations or permits established by other authorities. The foregoing, without prejudice to compliance with such obligations, authorizations or permits is a requirement for the commencement of operations of the respective permissioner.

The permits and authorizations granted by the CRE will not be a requirement for the granting of interconnection studies or the issuance of permits and authorizations by others. authorities.

Article 32.- To determine the severity referred to in Article 131 of the Act, the CRE when issuing the respective resolution to the revocation of the permits shall take into account

I. The duration;

II. Economic Affectation;

III. Number of affected;

IV. The existence of dolo or bad faith;

V. Negation;

VI. The degree of risk created for the reliable and safe operation of the National Electrical System as consequence of some action or omission;

VII. The recidivism, and

VIII. The others in terms of the Law.

Article 33.- To resolve the revocation of the permissions, the following will be done:

I. The CRE will notify the permissioner of the cause or causes that are invoked for the revocation of the permission;

II. Once the causation has been notified, the permit shall be within twenty working days, starting from the the date of the notification, in order to state what is appropriate and to present, where appropriate, the relevant tests and defences; and

III. Presentations and defenses and pleadings or expired term in the previous fraction without The CRE shall provide the appropriate resolution within a period not longer than 30 days.

The termination of the revocation shall be duly substantiated, reasoned and shall be notified within ten working days after such termination.

Article 34.- If, for the first time in any of the cases referred to in points (a), (e) and (f) of Article 131 (III) of the Law, the causal link is found, revocation in respect of the CRE issuing the respective decision, the procedure initiated shall be without effect upon acceptance and verification of the CRE and, where appropriate, applying the penalties to which the CRE has taken place in accordance with the Law and the other applicable provisions.

Article 35.- The revocation of a permit does not exempt the permissioner from the responsibilities incurred during its validity, or the obligation to compensate for damages or damages. which correspond in terms of the applicable legal provisions.

Article 36.- The holder of a permit that has been revoked, as well as the persons exercising control over that holder, will be unable to obtain another permit for the the same activity for a period of three years from the date on which the respective decision has been signed.

TITLE SECOND

Of The Electrical Industry

Chapter I

From Transmission and Distribution

Article 37.- The Public Power Transmission and Distribution Service shall be subject to the general administrative provisions of the CRE in respect of Quality, Reliability, Continuity, Security and Sustainability. The provision of such public service shall be carried out by observing the proper functioning and integrity of the equipment and devices of their networks.

The Public Power Transmission and Distribution Service must be provided under acceptable parameters of:

I. Tension;

II. Availability of the elements of the networks;

III. Electrical Supply Disruptions;

IV. Harmonic Components;

V. Electrical power losses, and

VI. Any other technical aspect that the CRE deems necessary.

For the purposes of the above, when defining the parameters to be determined as acceptable, the CRE shall take into account the associated economic aspects.

Chapter II

Conditions for Public Service Transmission and Distribution of Electrical Power and Electrical Supply

Article 38.- The regulation of the general conditions to be subject to the provision of the Public Power Transmission and Distribution Service, as well as the Electricity Supply shall be established by the general administrative provisions issuing the CRE.

The administrative provisions referred to in the preceding paragraph may lay down the general conditions for each regulated activity, where applicable, which must be to reflect the common practice of the industry under principles that allow the efficient and competitive development of the markets, as well as the provision of the Public Service for Transmission and Distribution of Electrical Power and Electrical Supply be in conditions of efficiency, quality, reliability, continuity, security and sustainability.

Also, through the implementation of a predictable, stable and transparent regulatory regime, which establishes conditions under the principles of proportionality and equity in procurement The Public Service for Transmission and Distribution of Electrical Power and Electrical Supply, will seek to prevent the carriers, distributors, and suppliers from unduly exercising market power to the detriment of the users.

Article 39.- The regulation will take into account the degree of openness, the concentration of participants and other aspects related to the conditions of competition in each segment of the the electrical industry.

Article 40.- Carriers, Distributors and Suppliers may not agree to conditions other than those set out in the general conditions approved by the CRE. The above shall be the exception of those expressly identified as negotiable under those general conditions.

Where appropriate, the conditions referred to in the preceding paragraph shall be subject to the circumstances of the respective user justifying it; to the Carriers, Distributors, and Suppliers to extend those conditions to any other user who is in similar circumstances, and those conditions do not impose undue limitations or discrimination on the commitments to provide the services previously acquired.

Article 41.- Carriers, Distributors and Suppliers must make general knowledge through remote means of access that they make available to interested parties, a version public of the marketable conditions that have been agreed, in terms of the previous article.

When such negotiable conditions constitute a new service delivery mode, it must be incorporated into the general conditions approved by the CRE for that mode.

Article 42.- The general conditions referred to in this Chapter shall also contain, in addition to the provisions of Article 27 of the Law, at least the following:

I. The way in which open access to the National Transmission Network and the General Networks of Distribution, as well as the obligations and conditions under which the interconnection of users must be allowed to receive the provision of services;

II. Quality, measurement and billing criteria, the information that the Suppliers will put to provision of the End Users, the non-unduly discriminatory conditions to which the services will be subject, ownership of the facilities for connection and interconnection of users, inter alia, and

III. The procedures for resolving disputes arising from the provision of services.

Chapter III

Open Access

Article 43.- Carriers and Distributors will provide the Public Power Transmission and Distribution Service for the use of the Network's capacity. National of Transmission and the General Distribution Networks for which they shall be subject to the general administrative provisions issued by the CRE, which shall contain at least:

I. The criteria for enabling the interconnection and connection of users to the infrastructure National Transmission Network and General Distribution Networks, taking into account the definition of the general technical specifications, the specific characteristics of the required infrastructure and the other determinations corresponding to the CENACE in accordance with Law and Market Rules, and

II. The information that Carriers and Distributors must make public, through newsletters electronic or other means of electronic access, in respect of the capacity of their networks and the operating conditions in the National Transmission Network and the General Distribution Networks.

Article 44.- Carriers and Distributors will be subject to the regulation establishing the CRE in connection with open access to the National Transmission Network and Networks. Distribution Generals, so that effective open access conditions are guaranteed, the Development and Efficient Operation of the Electrical Industry is encouraged and undue discrimination is avoided.

When Carriers and Distributors deny access to service to a user having available capacity and existing technical feasibility under the criteria approved and issued by the CRE and by the CENACE, or offer the service under unduly discriminatory conditions, the affected party may request the intervention of the Secretariat and the CRE in the field of their respective privileges.

Article 45.- Carriers and Distributors will be required to allow the interconnection of Electrical Central and the connection of Load Centers to the National Network of Transmission and General Distribution Networks in accordance with the general conditions that the CRE approves and issues and in terms of the Market Rules.

Article 46.- Carriers or Distributors may temporarily suspend connection or interconnection work to the National Transmission Network and the General Networks of Distribution for open access, in the following cases:

I. Natural phenomena that prevented the execution of connection or interconnection jobs exclusively for the duration of the phenomenon and its effects;

II. Social movements that impede the performance of jobs, only during the time when these movements restrict such realization, and

III. Other causes of force majeure that prevent the execution of connection or interconnection jobs to judgment of the CRE.

For the purposes of the above, the CRE will notify the Carrier or Distributor, the initiation of the investigation procedure on the causes that originated the failure of the open access obligations to their networks, asking them for the necessary information to enable the analysis to be carried out.

The Carrier or Distributor must provide the requested information within ten calendar days, counted from the day on which you have been notified of the information.

Chapter IV

Of Regulated Rates, Prices, and Contracapabilities

Article 47.- The CRE shall issue, by means of general administrative provisions, the regulation of consideration, prices, regulated tariffs and regulatory accounting For the provision of the Public Service for Transmission and Distribution, as well as for Electrical Supply in the modalities of Basic Supply and Supply of Last Resource, operation of CENACE and Services Conexo not included in the Electricity Market Wholesaler.

For each activity, the CRE will establish the regulation of contracts, prices or regulated tariffs, under principles that allow the efficient development of industry and markets. (a) competitive, reflecting best practices in investment and operational decisions and protecting the interests of users. The CRE shall not recognise any consideration, pricing or fees that deviate from such principles.

The provisions that the CRE issues in the field of regulatory accounting shall specify the catalogue of accounts and the rules for the accounting record which, independently of the corporate tax or corporate accounting, are necessary for the assessment and verification of prices, regulated tariffs and consideration, as well as the assessment of the performance of regulated subjects.

Additionally, the consideration, pricing, or Regulated Tariffs that the CRE authorizes shall constitute mechanisms that promote the rational use of goods and services.

The CRE shall establish the regulation referred to in this Article, so that the degree of intervention corresponds to the monopoly power in each regulated segment of the industry. This may, if appropriate, be applied in consideration of regulated tariffs, prices and tariffs based on market conditions, in accordance with best regulatory practices, if this contributes to the fulfilment of the objectives referred to in the paragraph previous.

In the determination of consideration, pricing or regulated tariffs, the CRE will employ the assessment tools it deems necessary to achieve its regulatory objectives, for which may perform comparative exercises and apply any adjustments it deems appropriate, as well as employ performance indicators.

The determination of regulated rates, prices or Fares to be approved by the CRE should enable users to have access to services in an efficient manner, Reliability, safety, quality and sustainability.

The CRE may require, in terms and formats to determine, cost information, operating conditions, and other items to assess the risk of the activities. and the performance and quality of service delivery, for the purposes of the tariff structure and its adjustments.

Article 48.- The consideration, pricing, or Regulated Tariffs that the CRE determines or approves will be maximum, and may be provided by the Generators that provide Conexo Services not included in the Wholesale Electricity Market, Carriers, Distributors, Basis and Supplier Suppliers of Last Resort to agree on conventional agreements or discounts in terms of the criteria to be determined by the CRE by means of administrative provisions of a general nature. In any event, the negotiation of such conventional agreements or the granting of discounts should be subject to principles of generality and non-discrimination. The permits referred to in this Article shall record before the CRE the contracts in which conventional agreements or discounts have been agreed.

Regulated rates, prices, or Fares will include all applicable concepts and charges based on the service delivery modes to be determined.

The CRE, in the general administrative provisions regarding consideration, prices and regulated tariffs, will establish the methodologies to evaluate the performance of the regulated entities for the purpose of determining adjustments, where appropriate, for the consideration, pricing and regulated tariffs.

Article 49.- The CRE shall publish on its electronic page the relevant information of the process of determination of the approved Regulated rates, prices and tariffs, as well as the relevant information regarding the conditions of the consideration, prices or conventional rates agreed or discounts granted. Such information shall include the calculation memories used to determine such rates and prices.

Article 50.- For the granting of the Basic Services or Supply of Last Resource permissions, it will not be required to have the approval of the Regulated tariffs, prices or tariffs. Without prejudice to the foregoing, the approval of such consideration, pricing or tariffs shall be a prerequisite for the commencement of operations.

Article 51.- The CRE shall issue, by means of general administrative provisions, the formats and specifications for the determination of the regulated tariffs.

Article 52.- The application for the approval and issuance of the consideration, price and regulated tariffs of the regulated activities, as well as the modification thereof, the following procedure will be attached:

I. Once the application is integrated, the CRE will perform the analysis and evaluation of the application, having a period of 90 days to resolve the conduct;

II. The CRE, during the first forty-five days of the period referred to in the previous fraction, may prevent the person concerned from preventing, within a period of ten days from the date of the notification, any omission or deficiency in the information submitted in his application. After this period has elapsed without further prevention, the CRE shall discard the application, and where appropriate, the consideration, price or the regulated tariff shall be determined in accordance with the provisions of the general administrative provisions which for such an issue;

III. At any time in the evaluation procedure, you can:

a) Require the data subject to the additional information deemed necessary to resolve the approval and issuing of the consideration, prices and regulated tariffs;

b) Conduct investigations;

c) Gathering information from other sources;

d) Consultations with federal, state, municipal, Federal District, and organ authorities political-administrative of their territorial demarcations;

e) Celebrate hearings, and

f) Perform, in general, any action deemed necessary to resolve the approval and issuance of the Regulated rates, prices and rates, and

IV. Once the corresponding analysis is performed, the CRE will resolve the request.

The procedure referred to in this article, and in its case the issue of the consideration, prices and regulated tariffs, will be made after payment of rights or benefits, in terms of the applicable legal provisions.

To establish the contracts, prices and regulated rates applied to the activities related to the Public Service of Transmission and Distribution of Electric Power the deadline set in the The first part of this article may be up to one hundred and twenty days.

Chapter V

From Contributions to Execution of Works for Interconnection or Connection to the National Transmission Network and General Distribution Networks

Article 53.- Corresponding to the CRE, in the field of its powers, to issue the general administrative provisions to regulate, in accordance with the general bases provided for in the Law, cases and the conditions for the applicants to make contributions, as well as the cases, terms and conditions under which the applicants may agree with the Supplier on the reimbursement of the contributions.

The provisions referred to in the preceding paragraph shall be based on the principle of economic viability.

When the net present value of the expected fee charge is greater than the marginal cost of interconnecting a user, the Carrier or the Distributor will be required to perform the necessary works for the connection.

The Contributions regime will be applicable when the rate is not sufficient to cover the costs of the corresponding connection, except for the assumption set out in section III of article 35 of the Law.

The CRE will issue the criteria and bases to determine and update the amount of the Contributions, the methodology of calculation of the Contributions and the corresponding models of agreements, will also authorize the charges for carrying out studies of the specific characteristics of the required infrastructure and for the other components of the interconnection and connection process proposed by CENACE.

Article 54.- The Carrier or Distributor, in accordance with the provisions of Article 35 of the Law, shall be obliged to carry out the specific works, extensions or modifications to the the required interconnection or connection; if the applicant makes the contribution corresponding to the most economical technical solution or the cost incurred by the Carrier or Distributor when there is no other solution. The Applicant may, where appropriate, choose to carry out the specific work, extension or modification in his capacity.

Article 55.- The Requester of the interconnection or connection may not modify the facilities owned by the Carrier or Distributor that are intended for the provision of the Public Service Transmission and Distribution. In these cases and if necessary, the Carrier or Distributor will be in charge of making such modifications.

Article 56.- The Carrier or Distributor may construct the specific work, extension or modification referred to in this Chapter by exceeding the requirements of the Applicant, but this only be obliged to cover as a contribution the proportional portion of the cost of the works, extensions or modifications that would be required to be provided to the interconnection or connection service, which in no case may be greater the contribution that the solution would have been applied more economical technique or the cost incurred by the Carrier or Distributor when there is no other solution.

Article 57.- The Applicant for a connection may directly build or, through the Carrier or Distributor in accordance with the convention, the distribution network for electrification of their:

I. Residential Fractions;

II. Housing assemblies, units, and condominiums;

III. Business centers, commercial, office, or mixed buildings with more than one service;

IV. Industrial parks;

V. Tourist developments, and

VI. Agricultural developments.

Article 58.- For the purposes of the exemption provided for in article 35, fraction III of the Law, the two hundred meters will be measured on streets, avenues, rights of way and easements of passage from the post or record closest to the existing Low Tension facilities of the Carrier or Distributor to the point of connection to the individual End User's facilities.

The CRE will define criteria for determining when a Load Center can be considered as installations of an individual End User in Low Tension.

Chapter VI

From Transmission, Distribution, and Power Supply

Article 59.- When the execution of the work referred to in Article 39 of the Law shall be made to prevent in a transitory manner the public use of the goods referred to in that article and other commons of common use of the different orders of government, the Carrier or Distributor shall request the authorization of the corresponding authority for the execution of the works. Also, the Carrier or Distributor may execute works without the corresponding permits in emergency cases and must request the ratification of the measure at the beginning of the works, indicating the time limit for the execution of the works. works. In no case shall these work generate any obligation to pay with the authorities concerned, except those relating to the corresponding repairs for the work carried out in those places.

Article 60.- For the purposes of Article 3, Section XLIV of the Law, the works and facilities required for the provision of the public lighting service shall not be considered as elements of the System Electric National, so the municipality as End User will be responsible for its construction, operation, maintenance and repair. The execution of the projects and other works related to that municipal service will not be matter of the Public Service of Transmission of Distribution so it will not be in charge of the Transporters or Distributors, without prejudice to the service contracts which they may conclude.

Chapter VII

Of The Disputes Related to the Interconnection or the Connection to the National Transmission Network and the General Distribution Networks

Article 61.- When the Applicant for a connection or interconnection considers that the Acts of the Carrier or Distributor does not adhere to the provisions of the Law, this Regulation or the provisions Applicable legal provisions, may submit in writing your complaint to the relevant Carrier or Distributor.

Article 62.- The Carrier or Distributor, within ten calendar days following the filing of the claim, will respond to the claim, which shall be duly reasoned and by written, attached to the terms set out in this Regulation and, where applicable, to the methodology, criteria and bases for determining and updating the amount of Contributions.

Article 63.- When the Applicant receives no response to his or her claim within the term set out in the previous article, or when the applicant has received his or her non-compliance, he/she may request the Intervention by the CRE, in terms of the applicable legal provisions.

Chapter VIII

Power Service Suspension

Article 64.- The CENACE and the Suppliers may only order the suspension of the electric power service, and the Carriers and Distributors will only execute such suspension, in the terms of the Article 41 of the Law and the general administrative provisions of the CRE.

Without prejudice to the foregoing, no liability for suspension of service shall be incurred where the service is originated by chance or force majeure, demonstrated in a strong manner.

Article 65.- The CENACE, the Carrier, Distributor or Supplier does not incur liability for interruptions from the Public Transmission and Distribution Service or Electrical Supply in the cases referred to in Article 41 of the Law, regardless of the duration of the interruption or the frequency of the interruption.

Article 66.- When the suspension of the Public Service of Transmission and Distribution of Electrical Energy originates from the cause provided for in section II of the Law, the Carrier or Distributor must notify the End Users directly or through the respective Supplier, by any means of mass communication of the locality that corresponds, and in a personal way to the End Users with more than 1000 kW of contracted demand, as well as hospitals and public service providers which require electrical energy as an essential input for carrying out their activities.

The notification referred to in the preceding paragraph shall be given at least forty-eight hours in advance at the beginning of the respective work, indicating the day, time and duration of the suspension of the service, as well as the time of resumption of the service, and the limits as accurately as possible of the affected area. The lack of notification referred to in this article will result in the Carrier, Distributor or Supplier incurring the penalty determined by the CRE, as well as the responsibilities that correspond in terms of the provisions. legal rules applicable to the suspension.

Article 67.- The Carrier or Distributor shall ensure that the works originating from the maintenance referred to in Article 41 (II) of the Law are carried out in hours and days in which the consumption of electrical energy significantly decreases, to affect the final users as little as possible, and that the duration of the suspension in the same zone is not greater than eight hours in one day and not more than twice in one month. If the Carrier or Distributor makes the suspension without prior notification referred to in the previous article to the End Users or the respective Supplier, it shall be liable for any direct damages caused to them.

The amount of the damages referred to in the preceding paragraph, as well as the payment method, shall be established in the agreements concluded by CENACE, the Carriers, Distributors and Suppliers. Such agreements shall provide for the manner in which refunds for undue suspensions of service or for damages caused to End Users shall be paid to the latter by the Carrier or Responsible Distributor.

Article 68.- When the suspension of the Public Power Transmission and Distribution Service is as a result of the provisions of Article 41, section I of the Law, the Carrier or Distributor shall carry out the works which correspond without the need to notify the End Users of the performance of such works and shall inform them only, after the resumption of the service, the fortuitous or force majeure that motivated the suspension.

Article 69.- If the Carrier or the Distributor suspends the service to an End User for any of the causes provided for in Section VI or Section VII of the Act, must inform the respective Supplier, informing the circumstances of the suspension of the service.

Article 70.- In the case of suspensions of the Public Service for Transmission and Distribution of Electrical Power or Electrical Supply caused by causes other than those of In accordance with Article 41 of the Law, which have a duration greater than that established by the CRE in the field of Continuity, the CENACE or the Supplier shall provide a bonus for the End Users, when issuing the respective invoice, an amount equal to two times the amount of power supply that has been available not to occur the suspension and that the End User has had to pay. The calculation of this amount shall be based on the consumption and average price of the invoice for the period preceding the suspension.

The amounts for bonuses that CENACE or the Supplier have made to the End Users in the cases of this Article may be required by the Carrier or Responsible distributor, in accordance with the respective contracts concluded between CENACE, Carriers, Distributors and Suppliers.

Article 71.- When by chance or force majeure on the National Electrical System, the Carrier or Distributor interrupts, restricts or modifies the characteristics of the Public Service of Transmission and Distribution of Electrical Energy, will make it the knowledge of the Suppliers and the End Users by the mass media with greater diffusion in the localities, or through its page of Internet and other means of communication as determined by the Carrier o Distributor, indicating the amount and duration of the suspension or restriction, as well as the days and hours in which they occurred and the affected areas.

In case the suspension, restriction or modification of the characteristics of the Public Power Transmission and Distribution Service referred to in the preceding paragraph For more than three calendar days, the Carrier or Distributor must inform the CENACE and submit for approval to the CRE the program that will be applied to deal with the situation. This programme must ensure that the suspension, restriction or modification of the characteristics of the Public Service for Transmission and Distribution of Electrical Energy causes the least possible disadvantages for the Suppliers and the End users and establish the applicable criteria for the allocation of available energy between different destinations and types of users.

Article 72.- When for lack of sufficient capacity or electrical power caused by fortuitous case or force majeure in the National Electrical System the CENACE interrupts, restrict or modify the characteristics of the Electrical Supply, make it known to the Suppliers and End Users by the mass media with greater dissemination in the localities, or through their website and other means of communication which determines the latter, indicating the amount and duration of the suspension or restriction, as well as the days and hours in which they occurred and the affected areas.

In the event that the interruption, restriction or modification of the characteristics of the Electrical Supply has to be prolonged for more than three calendar days, the CENACE must present its approval to the CRE, the programme to be implemented to deal with the situation. Such a programme should seek to cause the supply disruption to cause the least possible disadvantages for End Users and to establish the applicable criteria for the allocation of available energy between different destinations and types. of users.

Article 73.- If within the normal operating conditions, by act or omission imputable to the Carrier or Distributor, sudden changes in the characteristics of the Public Service of Transmission and Distribution of Electrical Energy, exceeding permissible tolerances in voltage or frequency, and with that reason are caused damage in installations, equipment or electrical appliances of the End User, the Supplier shall be obliged, at the request of the End User, to repair the said facilities, equipment or appliances, or to compensate the End User for the amount of damage caused.

The compensation amounts that the CENACE or the Supplier has made to the End Users in the cases of this Article may be required by the Carrier or Responsible distributor, in accordance with the respective agreements concluded between the CENACE, the Suppliers, the Carriers and the Distributors.

Article 74.- Fortuitous event or force majeure events affecting the Public Power Transmission and Distribution Service will be attended by the Carriers and the Respective distributors who will have to act jointly, in an orderly and coordinated manner, in the terms that CENACE has in order to restore the service in the shortest possible time.

Chapter IX

From Qualified User Records and Non-Supplier Marketers

Article 75.- Qualified Users and Users of the Market will have to report monthly to the CRE on the Load Centers that exceed the levels of consumption or demand necessary to obtain the registration of Qualified Users in terms of article 59 of the Law, so that it has the information to determine the End Users who are obliged or have the right to register in the Qualified Users registry.

Article 76.- Qualified Users must observe the provisions for the operation and operation of the Qualified User registry that establishes the CRE, which they must contain the procedures and procedures to be followed in order to ensure that the register operates efficiently and safely.

Article 77.- The registration of Qualified Users will be done by electronic means as determined by the CRE. At all times the obligation referred to in Article 60 of the Law shall be for the End User who receives the electrical supply at each Cargo Centre, without prejudice to the possibility that the Suppliers may make the registration on behalf of the End users who have asked them to represent their Load Centers.

Article 78.- Traders who do not provide Electrical Supply and therefore do not require permission, must register with the CRE. The registration shall be carried out by means of electronic means which the CRE has in effect.

Article 79.- Enrollment of Qualified Users as well as Non-Supplier Marketers will be performed without charge.

Chapter X

From The Wholesale Electrical Market

Article 80.- The operation of the Wholesale Electrical Market will be subject to the Market Rules, which will at all times ensure equal conditions for all Market participants, and should provide for, in addition to the provisions of the Law, at least the following:

I. The procedures to be performed by the Market Participants to perform the transactions referred to in Article 96 of the Law on the Wholesale Electrical Market which shall be of general application on an equal basis and which in no case may be discriminatory or grant undue advantage to the participants;

II. The features to be met by the Power Stations and Demand Resources Controllable in terms of electrical energy, power and the related services to be made available to the Wholesale Electrical Market, as well as the measurement, communication and other technical specifications required;

III. The methodology for evaluating the accredited power of Electrical and Demand Resources Controllable and to evaluate the actual performance of the power delivered;

IV. The methodology for forecasting and determining the level of demand and availability of supply of electrical energy, in order to maintain a steady balance between such demand and supply;

V. The methodology for setting transfer limits on various elements of the Network National Transmission and General Distribution Networks corresponding to the operation of the Wholesale Electrical Market, and between different nodes;

VI. The methodology for determining the allocation and dispatch of the Electrical and Resource Central Controllable Demand to participate in the Wholesale Electrical Market at any time, incorporating the annual hydrological program, restrictions on the transportation of electrical energy that could exist in the National Transmission Network and the Networks Distribution Generals the legacy interconnection contracts and the others relevant factors;

VII. Operating procedures to maintain the Security of Dispatch, Reliability, Quality, Continuity and efficiency Electrical Wholesale Market including those to be applied in case of emergency;

VIII. The criteria for determining the current and foreseeable optimal and required levels of the related services and other products necessary for the efficient operation of the National Electrical System;

IX. The different types of nodes included in the Wholesale Electrical Market;

X. The methodology for determining the prices of products included in the Electricity Market Wholesaler, as well as the procedures for its billing. For this purpose, local marginal prices will be integrated by an energy component, a congestion component and a loss component;

XI. The procedures for drawing up the programmes for the extension and modernisation of the Network National of Transmission and of the elements of the General Distribution Networks corresponding to the operation of the Wholesale Electrical Market, as well as the coordination of these programs with the indicative programs for the installation and withdrawal of Power Plants;

XII. The information that the Generators, Marketers, and Qualified Users will be required to report when they conclude electricity coverage contracts directly between them, as well as the procedures for these transactions to be considered in the invoicing of the Wholesale Electrical Market;

XIII. The models of the National Electrical System used in the operation of the Wholesale Electrical Market and the procedures for updating them;

XIV.       The procedures for the calculation of the technical losses of reference and actual losses of electrical energy in the National Transmission Network and of the elements of the General Distribution Networks corresponding to the operation of the Market Wholesale Electrical;

XV. The procedures to include the import and export of electrical power, power and services Related in the Wholesale Electrical Market;

XVI. The guarantees that Market Participants must present to CENACE;

XVII. The limits that will be imposed on the volume of transactions that will be committed by the Participants Market, taking into account its financial situation and the guarantees presented to CENACE;

XVIII.     The procedures for the settlement of disputes and to restrict or suspend the participation of those who do not comply with the Market Rules;

XIX. The procedures for applying the charges to be applied for non-compliance with the Market Rules;

XX. The information that CENACE should make available to the Market Participants and the general public;

XXI. Information that will be considered reserved or confidential, in accordance with the Federal Law of Transparency and Access to the Government Public Information and other applicable provisions in the matter;

XXII.      The procedures for the development of the Market Operational Provisions, and

XXIII. The others necessary for the best organization and proper functioning of the Wholesale Electrical Market.

Chapter XI

From Separation of Electrical Industry Integrants

Article 81.- The Secretariat may order the legal separation of the Generators, Carriers, Distributors, Dealers, suppliers of primary inputs for the electrical industry as well as order the disincorporation of assets, rights, social parts or shares, where necessary to promote open access or efficient operation of the power sector.

Article 82.- Without prejudice to the faculty of the Secretariat referred to in the previous article, the CRE shall establish by means of administrative provisions, the conditions under which it shall be the accounting, operational or functional separation of the members of the electrical industry, as well as the rules under which the transactions between the Generators and Traders belonging to the same group will be permitted. always and when the objectives of the Law are met. These provisions and rules will aim to promote the efficient development of the electrical industry, to strengthen open access to the National Transmission Network and to the General Network of Distribution, to prevent cross-subsidies between activities and avoid abuse of market power and the misuse of inside information.

Chapter XII

Of Clean Energy

Article 83.- The Clean Energy Certificates aim to contribute to achieving the goals of the policy on participation in the generation of electric energy, from sources of Clean Energy with minimum feasible cost and based on market mechanisms.

Article 84.- The Certificates of Clean Energy will be issued according to the unit of electrical energy generated from Clean Energy based on the criteria that for this effect will emit the Secretariat.

Chapter XIII

From The Electrical Universal Service Fund

Article 85.- The revenue surplus resulting from the management of technical losses in the Wholesale Electrical Market, intended for the Fund, shall be calculated from the difference between:

I. The net value resulting from the loss component of Local Marginal Prices on each node, when charging the amount of energy removed in each node and pay the amount of energy injected into each node in the Wholesale Electrical Market, and

II. The net value resulting from the power component of local marginal prices on each node, when charging the the amount of energy removed in each node and pay the amount of energy injected into each node in the Wholesale Electrical Market, as well as the other adjustments to be determined by the Market Rules.

The Fund's technical committee will inform CENACE of the resources required to finance the electrification projects in each year. The revenue surplus that CENACE will transfer to the Fund shall be understood as the least of the required resources and the funds generated by the difference between the two previous fractions.

THIRD TITLE

From the Social Impact Assessment and the Query

Chapter I

From the Social Impact Assessment and Assessment

Article 86.- Those interested in obtaining permits or authorizations to develop projects in the electrical industry including those relating to the provision of the Public Transmission Service and Distribution of Electrical Energy must present to the Secretariat the social impact assessment referred to in Article 120 of the Law, ninety days before its intention to start negotiations with the owners or owners of the land where the project concerned is intended to be located. Permits for the development of electrical industry projects will be granted once the social impact assessment is presented.

Article 87.- The social impact assessment must be presented in a document in accordance with the guide and format established by the Secretariat. Responsibility for the content of the document will be for the stakeholders to obtain permits or authorizations.

The social impact assessment will contain the identification of indigenous peoples and communities located in the area of direct and indirect influence of the project. The Secretariat shall issue the administrative provisions containing the methodology for the definition of the area of direct and indirect influence on the development projects of the electrical industry.

The Social Impact Assessment will contain the identification, prediction, and assessment of the positive and negative social impacts that could be derived from the project. They should include prevention and mitigation measures, as well as social management plans, proposed by those interested in developing the electricity industry project.

The Secretariat shall issue the resolution and recommendations corresponding to the assessment of the social impact within 90 calendar days of the submission of such assessment.

The Secretariat will issue a resolution and recommendations that correspond to the terms referred to in the previous paragraph.

In the event that the social impact assessment does not satisfy the provisions of the guide referred to in this article, the Secretariat shall prevent the person concerned from within 20 working days, The following day shall be counted from the day following the day on which the prevention is received. Prevention shall suspend the period referred to in the preceding paragraph until the omissions are remedied.

Article 88.- For the purposes of the resolution and recommendations to be issued by the Secretariat on the social impact assessment, it may be supported by third-party experts and competent authorities in the the matter, without such request for support, to amend, suspend or extend the time limit provided for in the previous Article to issue the relevant resolution and recommendations.

Chapter II

From Query

Article 89.- The Secretariat will be responsible for the consultation procedures regarding the projects of the electrical industry that will be developed in indigenous communities and peoples, to which it refers Article 119 of the Law and shall issue the relevant administrative provisions for consultation procedures in accordance with the stages laid down in Article 92 of this Regulation.

In the case of projects developed by the productive enterprises of the State, they will carry out the consultation procedures in terms of the administrative provisions referred to in the paragraph before, counting with the approval of the Secretariat.

Consultation procedures will be carried out free of coercion, providing information, vast, truthful and culturally relevant to the indigenous peoples and communities associated with the project.

Article 90.- The Secretariat shall carry out the consultation referred to in Article 119 of the Law, in coordination with the Secretariat of Government and the National Commission for the Development of Peoples Indigenous.

The above, without prejudice to the fact that the Secretariat determines that other federal, state and municipal agencies or entities, in the field of their competence and given the nature of the project to be consulted, must participate.

Article 91.- The consultation referred to in Article 119 of the Law shall be made to indigenous communities and peoples, through their representative institutions and through appropriate procedures, in order to reach an agreement or obtain free and informed consent.

The consultation referred to in Article 119 of the Law shall observe the guiding principles of good faith, freedom, information, cultural relevance, transparency, accommodation and reasonableness. It will also follow national and international standards in this field.

Article 92.- The consultation referred to in Article 119 of the Act shall comprise at least the following general stages:

I. Consultation Plan: Planning to be carried out by the Secretariat for the implementation of the consultation, and the establishment coordination with the agencies and entities referred to in Article 90 of this Regulation;

II. Previous agreements: The definitions that the Secretariat and the traditional or representative authorities of the indigenous communities and peoples agree on the way the consultation will take place;

III. Informativa: The delivery of sufficient and culturally relevant information to indigenous communities and peoples about the project that is submitted for query;

IV. Consultative: The period of dialogue that occurs within the community or indigenous people for the takeover decisions on the acceptance of the project submitted for consultation;

V. Deliberative: Building agreements or obtaining free and informed consent, according to be the case, on the development of the project submitted for consultation, and

VI. Monitoring of agreements: monitoring compliance with adopted agreements, using the a mechanism to define the indigenous community or people consulted for this purpose.

TITLE FOURTH

Other Obligations of Electrical Industry Integrants

Chapter I

Use and Surface Occupation

Article 93.- In order to facilitate the negotiation and agreement referred to in Articles 73 and 74 of the Law, the Secretariat for Agrarian, Territorial and Urban Development will elaborate, with the opinion of the Secretariat, the models of contracts referred to in Article 74 (VIII) of the Law, which shall comply with the provisions of that legal provision and this Regulation.

The above, so that the owners or owners of the land, property or rights in question, including real, ejido or communal rights, as well as those interested in lending the Public Service of Transmission and Distribution of Electrical Energy, and in the construction of power generation plants in those cases where, due to the characteristics of the project, it is necessary for a specific location, know the minimum content, as well as the rights and obligations of the parties which may be established in the contract which they subscribe for the use, enjoyment, affectation or, where appropriate, acquisition of the land, property or rights, without prejudice to the possibility for the parties to request the services for the purposes of this Article professionals who consider relevant.

Article 94.- The Secretariat, in coordination with the competent authorities in the field, will issue the guidelines that will regulate the cases and the conditions of participation, as well as the mechanisms for the designation of social witnesses in the negotiation processes among those interested in providing the Public Service of Transmission and Distribution of Electrical Energy, and in the construction of power generation plants in cases where, by the nature of the project, it is requires a specific location and the owners or owners of the land, or the right or right in question.

The Secretariat will provide for the participation of social witnesses in the following cases:

I. When any of the parties expressly request it from the Secretariat;

II. When the social impact study concludes that there are risk and vulnerability conditions in the area where the project will be developed, and

III. The others to be determined in the guidelines issued for this purpose by the Secretariat.

The participation of social witnesses should be governed by the principles of good faith, efficiency, effectiveness, objectivity and transparency.

Social witnesses shall be natural or moral persons, including associations or civil societies with no interest in their benefit or their relatives by affinity or consanguinity up to the fourth grade, neither of companies or companies in which they or their family members are or have been employees, advisers, partners or shareholders in the last year.

Article 95.- Social witnesses will have the following functions:

I. Note that the negotiation processes in which they participate are carried out in accordance with the applicable legal provisions;

II. Report on a quarterly basis to the Secretariat and the Secretariat for Agrarian, Territorial and (a) the Commission, in the context of the development of the negotiation process in which it participates and if necessary, to notify within the next forty-eight hours of any violations of the rights of the parties, in order to take account of the irregularities of the negotiation, and

III. The others to be established in the guidelines referred to in the previous article.

Article 96.- When any of the parties report and accredit to the Secretariat that the action of the social witnesses has not been developed in accordance with the provisions of the article 94, third paragraph of this Regulation, the Secretariat may declare the participation of such witnesses null and shall restrict their participation in future negotiations.

The social witnesses shall have the right of the hearing to indicate what is right, prior to the declaration of invalidity referred to in the preceding paragraph, by the Secretariat.

Article 97.- For the provision of the Public Power Transmission and Distribution Service, and the construction of power generation plants in those cases in which, due to the characteristics of the project, a specific location is required, the Secretariat shall ask the Institute annually for the implementation and, where appropriate, update of the tabs referred to in Article 76 of the Law.

Article 98.- The parties may apply to the Institute for the purposes referred to in Article 77 of the Law, through the means established by the Institute, or, if applicable, credit institutions of the country that are authorized, public brokers or professionals with a post-graduate degree, which must be registered in the specific section of the National Register of Valuers of the Institute, to be determined in collaboration with the Secretariat.

The Secretariat will ask the Institute annually for the implementation and, where appropriate, update of the tabs referred to in Article 76 of the Law.

Article 99.- Those interested in providing the Public Power Transmission and Distribution Service, and in the construction of power generation plants in cases in which, due to the characteristics of the project, a specific location is required, within 15 working days, they must notify the Secretariat and the Secretariat of Agrarian, Territorial and Urban Development of the beginning of the negotiations referred to in Article 74 of the Law.

At the request of either party and in order to facilitate the agreement referred to in article 74 of the Law, the Secretariat for Agrarian, Territorial and Urban Development may promote the negotiation for which you can do the following:

I. Verify that representatives or holders are present in the negotiations of the land, property or rights in which the project will be developed, those interested in providing the Public Service for Transmission and Distribution of Electrical Energy, and in the construction of power generation plants in those areas. cases where, due to the characteristics of the project, a specific location or their representatives and, where appropriate, the social witnesses appointed by the Secretariat;

II. To verify that the negotiation takes place in conditions of equity and that the holders of the land, property or rights in question are provided with the necessary technical and legal advice, which may be suggested for the performance of avalanches and other technical information;

III. Propose the celebration of consecutive meetings, suggesting to the parties the periodicity that should exist between each of them;

IV. Verify that the proposals and counter-proposals are in line with the law, and

V. Attend the parties to the written elaboration of the agreement, in accordance with the models of the contracts referred to in the Law and, where applicable, the validation of the Act before the relevant judicial authority.

Article 100.- For the purposes of Article 78 of the Law, those interested in providing the Public Service for Transmission and Distribution of Electrical Energy, and in the construction of plants for generating electricity in cases where, by the characteristics of the project, a specific location is required to be submitted in writing to the competent court and the Secretariat for Agricultural Development, Territorial and Urban, the agreement reached to that provision, within of the following thirty calendar days after the latter has subscribed.

Article 101.- The Secretariat for Agrarian, Territorial and Urban Development will issue the guidelines governing the mediation processes referred to in Article 79 (II). of the Law, which must provide, in addition to the provisions of Article 80 of the Law, the following:

I. The mediators of the Agrarian, Territorial and Urban Development Secretariat will have the substantiation of the mediation procedure and shall submit the relevant proposals in terms of the applicable legal provisions;

II. Mediators must notify the parties of the proposed agreement for the purposes of their formalization or to proceed in terms of the provisions of Article 81 of the Act, and

III. The Secretariat for Agrarian, Territorial and Urban Development will notify the Secretariat of the results of the the mediation for the effects from within the ten working days following the end of the mediation process.

Article 102.- For the purposes of Article 81 of the Law, the Secretariat for Agrarian, Territorial and Urban Development will issue guidelines, which will also have to be observed in Article 82 of the Law, at least the following:

I. The issue, by the Ministry of Agrarian, Territorial and Urban Development, will issue a preliminary opinion on the origin of the legal easement for the provision of the Public Service for the Transmission and Distribution of Electrical Energy, and the construction of power generation plants in those cases where, by the characteristics of the project, a specific location is required; It shall immediately notify the Secretariat, the persons concerned and the holder of the land, either right or right, so that within 10 working days of the date of notification of the preliminary opinion they shall state that the what they are entitled to correspond to;

II. While the procedure of legal serfdom is substance and until the resolution is given definitive, if the parties reach a final agreement in terms of the applicable legal provisions, this procedure will be without effect, and

III. The deadline for interested parties to express what is right for the Secretariat Agricultural, Territorial and Urban Development shall have a period of 15 working days to issue the final opinion on the conditions under which the legal easement must be established by administrative means.

Chapter II

Of The Information

Article 103.- The Members of the Electrical Industry must present to the Secretariat the CRE and the CENACE, all the information they request for their compliance with their powers, in relation to their activities, in accordance with the general administrative provisions which the effect they issue within the scope of their respective powers.

Such provisions will contain, for each activity and modality subject to supervision or regulation, the formats and specifications for the Electrical Industry Integrants to comply with with the reporting obligations to be determined.

Article 104.- The Secretariat, the CRE and the CENACE, within the scope of their competencies, may require the submission of information related to supervised activities or regulated by electronic means and information technologies, provided that the Members of the Electrical Industry have expressly indicated their refusal to use such means in accordance with the Law of Electronic Signature Advanced and its Rules of Procedure.

Article 105.- The Secretariat, the CRE and the CENACE, within the scope of their competencies, may require the Members of the Electrical Industry to submit written submissions to the which, in protest of the truth, is responsible for the technical and economic obligations and information they provide, in order to detect non-compliances and, where appropriate, the application of the respective penalties.

Chapter III

Monitoring, Verification, and Inspection

Article 106.- The Secretariat and the CRE to monitor, verify and monitor compliance with the Law, this Regulation, the Market Rules and other provisions emanating from They may order and carry out inspections and verification visits which they deem necessary for the members of the Electrical Industry, in cases where they are required and within the scope of their powers, without prejudice to those arising from the application of the Federal Law on Metrology and Standardisation.

Article 107.- The verifiers and inspectors authorized by the Secretariat and the CRE must have an official identification document and the necessary elements to enhance the full and effective practice of verification visits or inspections.

The verifiers and inspectors must also have the appropriate verification or inspection order, which must be addressed to those who will be allowed to visit the verification or inspection; the date on which the verification visit and inspection will take place; the address at which these visits are to be carried out; the period covering the visit and other circumstances to be taken into consideration by the the Secretariat or the CRE. The verification or inspection order shall also indicate the legal basis for the practice of the visit and the subject matter of the verification or inspection.

The verifiers and inspectors will have free access to the buildings, premises and facilities of the permissioners, users, consumers and other Members of the Electrical Industry at last. to comply with the order of verification visit or inspection and it will be the obligation of the users, consumers or owners concerned, as well as of the Members of the Electrical Industry, if necessary, to provide all the facilities for the verification or inspection visits are carried out, and give the instructions to their representatives or staff in order not to prevent any obstacles to such verification or inspection.

The subject of the verification or inspection shall notify in advance of the withdrawal or replacement of its personnel.

Article 108.- The Secretariat may make or order verification or inspection visits to the works and facilities of the End Users, to monitor and monitor the following:

I. Compliance with the Law, this Regulation and other provisions that emanate from them;

II. The installations of Load Centers or End Users that do not connect to another user's facilities, Carrier, Distributor or private networks, without the corresponding contract;

III. That the facilities of the Load Centers or End Users do not consume electrical power through installations which alter or impede the normal operation of equipment, apparatus or instruments for the control or measurement of Electrical Supply, and

IV. That the Load Centers or End Users do not use electrical power in a manner other than that set in the Electrical Supply Contract.

Article 109.- The CRE may perform or order the following verification or inspection visits:

I. To the works and installations of the Generators, Carriers, Distributors and CENACE, to verify the compliance with the Law, this Regulation and other provisions of this Regulation, as well as the conditions laid down in the respective permits or authorizations;

II. To the works and installations of the holders of the Legacies Pipeline Contracts, to verify compliance with the laws, regulations and administrative provisions;

III. Aquellas needed for market surveillance and to verify that the Generators and Demand offers Controllable are cost-based, as set out in the Market Rules, and

IV. Those that are required to verify compliance with Market Rules.

Article 110.- To carry out verification or inspection visits, the following general procedure is followed:

I. The inspector must deliver the verification or inspection visit order to the person with whom the diligence;

II. circumstantial act will be lifted in the presence of two witnesses proposed by the person with whom the diligence, or by the inspector, if the inspector has refused to propose them. The person with whom the diligence is understood may record in the minutes what is appropriate to his right;

III. A copy of the act will be left to the person with whom the diligence was understood, who must sign it. The minutes shall be valid even if the person is refused to sign it;

IV. If the verification visit or inspection is prevented, this will be recorded in the minutes, with the warning that the award measures and the related sanctions will be applied. If the user is preventing the verification visit or inspection requested by the Supplier to verify the existence of any of the infringements provided for in Article 165 (VI) of the Law, their existence shall be presumed and shall apply the application to the user of the penalties provided for in the same, unless proof to the contrary, and

V. The user shall have within 10 working days of the date on which the verification report has been lifted or inspection, to provide in writing the evidence it deems relevant.

Article 111.- Dealing with verification visits or inspection of electrical works and installations to verify compliance with the requirements of Mexican official standards, the the procedure referred to in the previous Article and in addition:

I. For High-Tension connections the End User will be notified on the day and time the visit will take place. verification or inspection at its installation, not less than 24 hours in advance. This formality shall not be required for other stresses;

II. If the facility does not comply with Mexican official standards in aspects that do not endanger life or property persons, the End User shall be notified of the faults found, as well as the corrections to be made and the time limit for making them, warning that in the event of non-compliance the corresponding penalties shall be imposed;

III. If the installation has parts that could endanger people's life or property, notify these non-conformities to the End User, referring them to the corresponding Mexican official rules, specifying the corrections to be made and the time limit for carrying them out, as will be estimated according to the complexity of the jobs, warning you that if you do not meet the requirements you will order the suspension of the Electricity Supply, without prejudice to the faculty of the Carrier or Distributor to perform the service cut. After the deadline, a second verification visit or inspection will be carried out and if the faults have not been corrected, the Carrier or Distributor will be ordered to suspend the Electrical Supply, making the End User a copy of that order;

IV. If the facility does not comply with official Mexican standards and represents imminent risks to the the life or property of the persons, the Carrier or Distributor shall be ordered to suspend the Electrical Supply and the Final User shall be notified of the deficiencies found to correct them or to order the partial or total withdrawal of the installation, if the case merits it, and

V.          The notice of the Secretariat or the CRE, as appropriate, to the Carrier or Distributor to resume the Electrical Supply will be given once the Secretariat or the CRE has verified that the facility presents no risks.

Article 112.- All installations for the use of electrical energy must comply with applicable Mexican official standards. The Secretariat may verify compliance with these Mexican official standards.

In the case of connections to installations for the use of electrical energy for High-voltage services and for the provision of services in places of public concentration, require that a verification unit approved by the Secretariat verify in the formats that for this purpose, that the installation in question complies with the official Mexican standards applicable to such installations.

They are considered as places of public concentration for the verification of the electrical installations referred to in the preceding paragraph, those intended for leisure activities, sports, educational, work, commercial, health, as well as any other area where it meets the general public.

The Secretariat shall issue the agreement to determine the places of public concentration for the verification of the facilities for the use of electrical energy, as provided for in the paragraph previous.

Article 113.- Carriers and Distributors must use and install only measuring instruments that have obtained a prototype model approval according to the provided by the Federal Law on Metrology and Standardisation and the corresponding Mexican official standard and, in the absence thereof, in accordance with the Mexican standard or international standard.

Carriers and Distributors must verify through accredited and approved verification units, at least once every three years, the installed measuring instruments to ensure that they conform to the accuracy established in the Mexican official standard and in the absence of the Mexican standard according to the corresponding one in accordance with the preceding paragraph.

Carriers and Distributors must remove measuring instruments that cannot be calibrated to ensure the accuracy of the corresponding standard and replace them. for those who comply with it.

The verification units shall report to the Secretariat of Economics the verification opinions they issue by means of the electronic system to be established for that purpose.

If of the verification referred to in this article, the Carrier or Distributor finds in the equipment or measuring instrument installed errors in the consumer record, outside of the permissible tolerance and provided that there is no alteration or impairment of the normal function of these, it shall proceed as follows:

I. Dealing with equipment, appliances, or instruments for measuring energy, maximum demands, or determination of power factor, obtain the relationships between the wrong values and the correct ones, which will serve to determine the new values of energy consumed, maximum demands and determination of the power factor, depending on the case;

II. If the equipment, apparatus or measuring instrument does not record the energy consumed, the energy Reactive consumption, or both, shall be determined on the basis of the records prior to or after the correction;

In the case of application of a different measurement constant to the actual or the wrong application of a the rate, the electricity consumption shall be determined by applying the actual measurement constant to the measurement differences or by applying the corresponding tariff;

III. The adjustments mentioned in the preceding fractions shall apply to the period that is less than: (i) the period from the date of the last correct verification and the date of determination of the fault; and (ii) one year;

IV. The amount of the respective adjustment shall include the applicable taxes and duties and shall be calculated by applying the fees of the corresponding charges in force in the period determined, the correct values of energy consumed, the claims and the power factor, as the case may be. The resulting amount will be compared to the total amount of invoices cleared by the End User or its electrical power prepayments, when the End User has selected this mode, in accordance with the Carrier's records o Distributor, and the difference shall be the basis for the payment of electrical energy or the return, in terms of this Article;

V. If the amount of the adjustment to the billing is less than the End User, the Supplier or CENACE, as the case may be, will make the difference between both amounts in cash or by bonus, in national currency, in the account of the End User, at the choice of the latter. If the amount of the billing adjustment is higher than that paid by the End User, the Supplier or CENACE, as the case may be, you will be charged the difference between the two amounts which will be prorated on as many monthly bills as months. passed in the error;

VI. The deadline to effect the cash back or the Bonus on the End User account refers to this article, shall be fixed by mutual agreement between the latter and the Supplier or the CENACE, as the case may be, but shall not be longer than the period covered by the adjustment; and

VII. In case of disagreement on the return, bonus, or the deadline referred to the previous fraction, The End User may lodge his complaint, in terms of the provisions of Article 119 of this Regulation.

When derived from the verification to the equipment, apparatus or measuring instrument the replacement of the equipment is performed and the billing is adjusted, the Carrier or Distributor must elaborate a constancy in which it describes the development of the verification, the state of the equipment, apparatus or measuring instrument with respect to the applicable official Mexican standard; where there is no such, with the international specifications, those of the country of origin or, in the absence thereof, the manufacturer's and, where appropriate, the reasons for the which gave rise to the adjustment of the invoicing. The Carrier or Distributor must copy the record with autograph signature to the End User.

If the Carrier or Distributor does not observe the procedure set forth in this article, the End User will have no obligation to pay the amount for the corresponding adjustment. until the Carrier or Distributor carries out such a procedure, in such a case, the Carrier or Distributor shall be liable to the Supplier or the CENACE for the relevant charges.

Article 114.- When the Carrier or Distributor carries out a verification in terms of the previous article, and they consider the End User to be in any of the Article 165 of the Law provides for a description of the development of the respective verification, as provided for in Article 165 (VI) of the Law. In this case, the calculation of the corresponding adjustment shall be determined in accordance with the following:

I. The Carrier or Distributor will be able to determine the energy values consumed, demands maximum or determination of the power factor, based on the information collected at the time of verification;

II. Verification of energy measurement equipment or instruments, maximum or demand determination of the power factor, as the case may be, the relationships between the values recorded by the intervening meters and the correct ones, which will be used to determine the new values of energy consumed, of demands maximum or determination of the power factor, as the case may be, and

III. With the determined values the amount of the electrical energy consumed will be calculated and not invoiced, as well as the other concepts that make up the tariff, applying the tariff quotas that were in force from the date on which the infringement was committed, plus the corresponding taxes and duties. For the purposes of the calculation, the period from the date on which the infringement was committed and the date of verification shall not be longer than 10 years.

Article 115.- When the End User considers that the apparatus, equipment, or measuring instrument installed by the Carrier or Distributor on behalf of the Supplier does not measure appropriately, you may request the Supplier to carry out any verifications that may be carried out in his or her presence or of the person designated by that End User. In case of errors in the consumption records, the provisions of Article 121 of this Regulation shall be made.

If the apparatus, equipment, or measuring instrument installed by the Carrier or Distributor conforms to the accuracy set forth in the applicable official Mexican standard; where there is no such device, with the international specifications, those of the country of origin or, in the absence thereof, the manufacturer's, the End User shall cover the Supplier the cost of the verification carried out in terms of the previous paragraph. Otherwise, the cost will be borne by the Supplier, who will have the right to recall it to the Carrier or Distributor.

Article 116.- The End User will allow access to the places you own the Carrier or Distributor for installation, preservation, verification or withdrawal of the lines and equipment required to give the connection, the End User being obliged not to alter these lines and equipment.

The Carrier or Distributor will be able to perform the necessary works on the works and installations of its property that are located within the End User's building, for which inform you in advance, in order to cause you the least possible effects. Once the work has been completed, the Carrier or Distributor will repair the material damage caused to them and remove the waste materials.

Article 117.- The administrative acts to be notified under this Regulation must have at least the following requirements:

I. Constar in writing;

II. Dealing with administrative acts that consist of digital documents and must be notified personally;

III. Point out the issuing authority;

IV. Point and date of issue;

V. Be founded, motivated and express the resolution, object or purpose in question;

VI. The signature of the competent public server and, where applicable, the name or names of the persons to whom directed. When the name of the person to whom it is addressed is ignored, sufficient data to permit identification shall be indicated, and

VII. If these are administrative resolutions that determine the solidarity responsibility, it will be pointed out, in addition, the legal cause of liability.

Article 118.- In order to verify that the Market Participants or those who are required to do so have complied with the provisions contained in the Act, this Regulation, Market rules and other applicable legal systems, or where appropriate, to determine or verify the commission of acts or omissions contrary to the Law and to provide information to other authorities, the Secretariat, the CRE and the CENACE qualified for:

I. Require Market Participants or those who are required to do so, the presentation of data, documents, reports and other information required for the purpose of carrying out the relevant verification;

II. Practice verification visits or inspection of Market Participants or those who are required to do so, in order to verify compliance with the obligations contained in the Law, this Regulation and other applicable legal provisions, as provided for in this Regulation;

III. To collect from public servants or public feeders, reports and data in their possession on the occasion of their duties and are related to the activities carried out by the Market Participants in the electricity industry, in terms of the applicable legal provisions, and

IV. Request the practice of audits, expertise or other means, by itself or through third parties, to clarify the technical conditions of a Market Participant and its compliance with the applicable legal provisions.

The competent authorities shall not be deemed to initiate the exercise of their supervisory or inspection powers, when they only request the data, reports and documents to which they are refers to this article, and can be exercised at any time.

Article 119.- The complaints, referred to in section VII, of Article 27 of the Law, related to the Public Service of Transmission and Distribution, shall be subject to the following procedure:

I. Carriers and Distributors must address and respond to the complaints of the Suppliers in a term of ten working days counted from the day following the date on which the complaint was lodged;

II. Complaints may be filed in writing, telephone, e-mail or through the authorities in the electricity sector. Carriers and Distributors will also be able to enable sites for complaint submission on their electronic pages;

III. If the deadline set in the section I of this article has elapsed, the complaint is not addressed. assume certain facts contained in it by having the Carrier or Distributor attend to it in its terms;

III. If the Supplier does not agree with the Carrier or Distributor response, you may request the intervention of the CRE, and

V. Carriers and Distributors will produce a public report of the number of complaints received and the attention given to they group them into the following items:

a) On business;

b) Measurement and Distribution, and

c) Processed and imsourced.

The report to which this fraction refers will be taken into account by the CRE for the determination of compliance with the general conditions For the provision of Electrical Supply, the CRE may issue guidelines on the content and preparation of this report.

Article 120.- The attention of the complaints referred to in Article 12 of the Law, in which the Federal Office of the Consumer is unable to act as an arbitrator or to be imparted before such authority, they shall be subject to the following procedure:

I.            The Supplier must address and respond to the complaints of the End Users within ten working days from the day following the date on which the complaint was lodged;

II.           Complaints may be submitted in writing, telephone, telephone, e-mail. Suppliers will have a section of complaints and attention to users on their electronic pages;

III.          If the time limit stated in the section I of this article has elapsed, the complaint is not taken care of the facts contained in it must be assumed by the Carrier or Distributor in its terms;

IV.         If the End User does not agree with the Supplier's response, you may request the CRE to intervene;

V. The Suppliers will produce a public report of the number of complaints received and the attention given to them grouping them into the following items:

a) On business;

b) Measurement, and

c) Processed and imsourced.

VI. The report to which this fraction refers will be taken into account by the CRE for the determination of compliance with the general conditions for the provision of Electrical Supply, so the CRE may issue guidelines on content and development.

The report to which this fraction refers will be taken into account by the CRE for the determination of compliance with the general conditions For the provision of Electrical Supply, the CRE may issue guidelines regarding its content.

Article 121.- When there are complaints regarding the measurement, the readings of the meters that the End User would have installed to verify the measurements of the equipment of the Supplier or of the The Carrier or Distributor for the account of the Supplier may be considered as elements of judgment for the CRE or the Federal Office of the Consumer, as the case may be, if they consider it appropriate, as long as the readings of the meters do not alter the proper functioning of the installed equipment by the Supplier.

Such authorities may request that a duly accredited verification unit carry out a review of the meters installed by the Supplier. By issuing your resolution on the complaint, the CRE or the Consumer Federal Attorney's Office, as appropriate, will determine that the person who is not right must pay the cost of the verification.

TITLE FIFTH

From the Advisory Council for the Promotion of the National Electrical Industry

Chapter I

Integration of the Advisory Council

Article 122.- The Advisory Council is a collegiate body that aims to support the industrial development of Local Production Chains, which will be integrated by:

I. A representative of the Ministry of Economy, who will chair it;

II. A representative of the Secretariat, and

III. A representative of the CRE.

Attend as members of the Commission, with voice but no vote, representatives of the academic sector, representatives of the private sector or industry, who have a presence at the level national, which shall be determined by the Holder of the Secretariat of the Economy.

As permanent guests will be able to attend the productive enterprises of the State that provide the Public Service of Transmission and Distribution of Electrical Energy, as well as the dependencies or entities of the Federal and State Public Administration and representatives of the private sector to be determined by the Chairman of the Advisory Board.

The Advisory Council, on the proposal of its President, shall issue the guidelines governing its operation.

Article 123.- The President of the Advisory Council shall have a minimum level of Undersecretary or its equivalent, who may be supplied by public servants with a minimum level of Director General or equivalent.

The representatives of the Federal Public Administration who will be members of the Advisory Council must have a minimum level of Under-Secretary or equivalent and may be supplied by officials of the lower immediate level.

The representatives of the academic and business sectors that make up the Advisory Board will be replaced by the people they appoint.

The Advisory Council will have a Technical Secretary who will be responsible for issuing the calls for meetings of the Advisory Council, raising the minutes of the meetings, as well as giving monitoring of the agreements to be adopted in the Advisory Council.

Chapter II

Operating the Advisory Board

Article 124.- The Advisory Council shall be validly biased with the presence of the simple majority of its members and its decisions shall be adopted by a majority of votes of those present, having their President vote of quality in case of a tie.

Sessions may be ordinary or extraordinary. The first shall be carried out at least once every four months. The extraordinary shall be carried out at any time at the request of the Chairman of the Advisory Board.

Calls will be sent at least five working days in advance for ordinary sessions and two working days in advance for the extraordinary sessions.

Article 125.- Sessions may only be attended by members and guests who are formally accredited to the Advisory Board.

For the purposes of the above, the owners of the Federal Public Administration's offices and representatives of the academic sector or the electrical industry that make up the Council The President of the Advisory Council shall be officially informed by the Advisory Board of the names and positions of their representatives and alternates.

Chapter III

Advisory Council Functions

Article 126.- The Advisory Board will perform support functions regarding:

I. The definition of policies, criteria and methodologies for the diagnosis of product offerings, goods and services of the electrical industry;

II. In the promotion of the national electricity industry;

III. The formation of regional and national production chains, of the electrical industry, and

IV. The development of human resources talent, innovation and technology in industry power.

Article 127.- The Chairman of the Advisory Board will have the following functions:

I. Coordinate Consultative Council sessions;

II. To request the Technical Secretary to elaborate studies on the issues to be presented to the Consideration of the Advisory Board, and

III. Propose the guidelines governing the operation of the Advisory Board.

TITLE SIXTH

Of National Content and Strategies for Industrial Development and Investment in the Electrical Industry

Article 128.- The Secretariat shall include in each contract or association the object of which is the installation or extension of the infrastructure necessary to provide the Public Transmission Service and Distribution of Electrical Energy the minimum percentage of national content. The Secretariat of the Economy shall, at the request of the Secretariat, give its opinion on the minimum percentage above, within 10 working days. The Secretariat should note that this percentage does not create undue advantages.

In addition, the tendering bases for the contracts or associations referred to in the preceding paragraph shall provide for the minimum percentage of national content established in accordance with Article 4 (4). 30 of the Law.

Article 129.- The Ministry of Economy, with the aim of being able to require the companies of the Electrical Industry to provide information on the degree of national content in the activities they carry out, in terms of the second paragraph of Article 91 of the Law, the Secretariat shall be required to list them.

Article 130.- The Secretariat of Economy to carry out the verification of the national content referred to in Article 91 of the Law, may be assisted by the Secretariat or the authorities competent to verify the accuracy of the information provided to it by the companies of the Electrical Industry.

Article 131.- The Secretariat of Economy will inform the Secretariat when any company in the Electrical Industry refrains from providing timely information that it requires carry out the verification of the national content provided for in Article 91 of the Law.

The Secretariat shall impose appropriate penalties in accordance with applicable law and regulations.

Article 132.- The Secretariat of Economy will inform the Secretariat when a member of the Electrical Industry fails to comply with this percentage of national content within five working days. after their determination.

The Secretariat shall impose penalties in accordance with the relevant contract or association.

Article 133.- The Secretariat shall issue the opinion referred to in the first paragraph of Article 90 of the Law, within twenty working days after the receipt of the proposal of the strategies for the industrial promotion of local production chains and for the promotion of direct investment in the electricity industry that the Secretariat of Economy has to propose.

Article 134.- For the Secretariat to have the necessary elements to determine the minimum percentage of national content referred to in Article 30 (IV) of the Law, the Secretariat and the Secretariat of the Economy shall establish a basis for collaboration with the aim of establishing the mechanism for the exchange of information necessary to enable the Secretariat to make such a determination.

TRANSIENT

First. This Regulation shall enter into force on the day following its publication in the Official Journal of the Federation.

Second. The Electrical Power Public Service Act Regulation and the administrative provisions that oppose this Regulation are repealed.

The Regulation of the Public Service of Electrical Energy in the field of Contributions will remain in force, in so far as it does not object to this Regulation, as the CRE issues the provisions general administrative provisions in the field referred to in Article 53 of this Regulation.

Third. As long as the Secretariat establishes the terms for the legal separation referred to in the Fourth of the Law, the Federal Electricity Commission will be responsible for completing the processes for bidding, concluding and administering the respective contracts and supervising the construction of the Electrical Power Stations which have been included in the Federation's Government Budget for Development in Investment Mode conditioned.

Fourth. The exemption from the requirements of obtaining Certificates of Clean Energy established in the Sixth Transitional Law of the Law will apply to the portion of the consumption of the Load centers included in each Legacy Pipeline Contract that has been supplied in its entirety from Clean Energy by the Electrical Power Stations referred to in the same contract.

When a portion of the consumption of these Cargo Centers is provided in the terms of the Law of the Electrical Industry, the obligations to acquire Certificates of Clean Energy associated with that consumption shall correspond to the representative of those charging centres in the Wholesale Electrical Market.

Therefore, the obligation corresponding to the holder of each Legacy Interconnection Contract shall be based on the portion of the consumption of the Cargo Centers included in that contract that has been supplied from sources which are not considered to be Clean Energy by the Electrical Power Stations referred to in the same contract.

Legacy Interconnection Contract holders will inform the CRE of the manner in which they will comply with the obligations of clean energy derived from the Cargo Centers that is they are included in those Contracts; for this purpose they shall take into account the proportion of the energy consumption of each of these Load Centres.

Fifth. Until the Energy Regulatory Commission issues the provisions or criteria in the field of Quality, Reliability, Continuity and Security of the Office of the Electrical System National, those that have been issued prior to the entry into force of the Law of the Electrical Industry will remain in force.

Sixth. The provisions issued prior to the entry into force of the Law on Electrical Industry relating to hiring, tariffs, metering, billing, and other charges Concepts related to the supply and sale of electricity will remain in force until new provisions on these matters are issued.

Seventh. As long as the Market Rules are issued, the National Energy Control Center will monitor that the End User's charges comply with the harmonic distortion limits of the current that they inject or transmit to the National Electrical System, in such a way that the systems and the equipment that make up the system are guaranteed to operate correctly

Eighth. The Secretariat, the National Center for Energy Control, Carriers and Distributors, for the preparation of the first program of expansion and modernization of the Network National Transmission and General Distribution Networks, as well as the first National Electrical System Development Program, shall be exempt from the provisions of Article 9 of this Regulation. The proposals of the first programs for the expansion and modernization of the National Transmission Network and the General Network of Distribution will have to be submitted to SENER in April 2015, which will have to issue the first Program of Development of the National Electrical System by 30 June 2015 at the latest.

Ninth. For the development of the National Electrical System Development Program, the Secretariat will take into account the general conditions for the Public Service Transmission and Distribution to be established by the CRE, in addition to the gradual improvement established in the sectoral programmes.

Tenth. When a Legacy Contract for Basic Supply is based on a Legacy Power Plant, the cost and amount of electrical energy and Associated Products will be based on the historical results of that central, in such a way that the Generator may benefit from the improvements in capacity or efficiency that it performs.

Tenth First. The Regulation of the Law of the Public Service of Electrical Energy in Matter of Contributions will remain in force as long as the Energy Regulatory Commission does not issue Provisions referred to in Article 53 of this Regulation.

Tenth Second. The CENACE will conduct the management and carry out the studies related to the celebration and modification of the Legacy Interconnection Contracts. The obligation of the Carriers and the Distributors to conclude the interconnection contracts referred to in Article 33 of the Law is applicable to the Legacies Interconnection Contracts and the other instruments related to them. This obligation shall be the responsibility of the Federal Electricity Commission until such time as the legal separation referred to in the Fourth of the Law is concerned.

Tenth Third. Until for a maximum period of two years counted from the start of the Wholesale Electrical Market operations, CENACE will perform, in the name of the Suppliers and Qualified Users of the Market, the estimation of the demand and electrical consumption of its Cargo Centers, for the purpose of planning the dispatch and operation of the National Electrical System.

Given at the Federal Executive Branch, in Mexico City, at twenty-nine in October of two thousand fourteen.- Enrique Peña Nieto.-Heading.-The Secretary of Energy, Pedro Joaquín Coldwell.-Heading.-The Secretary of the Economy, Ildefonso Guajardo Villarreal.-Heading.-The Secretary of Agrarian, Territorial and Urban Development, Jorge Carlos Ramírez Marin.-Heading.-In the absence of the Secretary of the Public Service, in accordance with the provisions of Articles 18 of the Law Organic of the Federal Public Administration; 7, fraction XII, and 86 of the Rules of Procedure of the Secretariat of the Civil Service, the Undersecretary of Administrative Responsibilities and Public Contracts, Julian Alfonso Olivas Ugalde.- Heading.