Mexican regulators look to tighten fuel sale, gas distribution rules

Mexican energy regulator CRE has filed a proposal to increase the requirements for fuel sale and distribution requests.

The proposal filed with regulatory improvement commission Conamer is aimed at adjusting the agency's procedures to assess requests for new permits and for updating existing ones.

The new requirements outlined in the regulation include asking permit holders to issue periodic reports commercial information, including discounts offered and commercial margins.

They also set new restrictions forbidding the sale of fuels and petrochemicals between two fuel sale companies under certain conditions, according to local law firm Cortés Quesada.

"These requirements could prove excessive for the involved participants" and "could have a substantial impact on the sector, given their broad reach and application," the law firm said in a statement.

Once the regulation clears Conamer's review process, permit holders will have 90 days from the proposal's publication to comply with the new requirements.

A second proposal filed by CRE for Conamer's assessment involves changes to the regulation governing natural gas distribution via pipeline.

Among other changes, the new scheme sets a maximum profitability for distribution, which will be calculated taking into account capital costs and risk every five years.

The current regulation allows CRE to evaluate profitability rates proposed by permit holders on a case-by-case basis.

The new regulation also adjusts the service price-setting mechanism.