On 15 March 2018, the Energy Regulatory Commission (the CRE) authorized the National Center for Energy Control (the CENACE) to publish the call for bidders to participate in the first 2018 Long Term Auction (the Auction) to award power hedging agreements for the purchase and sale of power (generation capacity), electricity and clean energy certificates. CRE has authorized the publication of this call. In the past, the Ministry of Energy published and awarded prior Long Term Auctions.

The bidding rules will be published on 28 March 2018 on CENACE's web page (the Bidding Rules), and it will contain the requirements and specifications to participate in the Auction.

To participate in the Auction, the payment for the acquisition of the Bidding Rules will be required, which entails the right to participate in clarification meetings and other subsequent events. The cost of acquisition of the Bidding Rules will be the equivalent in Mexican pesos to 5,000 Mexican Investment Units (UDIs, for its acronym in Spanish) plus the Value Added Tax.

The calendar for the Auction process is as follows:

No. Activity Date
1. Publication of the Bidding Rules March 28th, 2018
2. Term to process payments: Bidding Rules, requests of prequalification or registration as potential buyer From March 28th to August 7th, 2018
3. Training session: registry, payments and clarification meetings April 13th, 2018
4. Clarification meetings From April 23rd, to May 11th, 2018
5. Publication of the final version of the Bidding Rules May 30th, 2018
6. Submission of the registry application as potential buyer June 6th, 2018
7. Submission before CENACE of the purchase offers from the basic services supplier June 28th, 2018
8. Submission before CENACE of the purchase offers from the load responsible entities which are not basic services suppliers July 12th, 2018
9. Notification of the quantity, price and parameters of the accepted purchase orders from all load responsible entities July 16th, 2018
10 Receipt of prequalification requests of sale offers August 21st and 22nd, 2018
11 Issuance of prequalification certificates October 11th, 2018
12. Receipt of the first and second stage of the economic offers regarding the sale offers October 17th and 22nd, 2018
13. Review of economic offers regarding the sale offers October 23rd, 2018
14. Evaluation of economic offers regarding the sale offers October 24th, 2018
15. Auction resolution and award of the power hedging agreements November 2nd, 2018
16. Deadline to execute the power hedging agreements February 15th, 2019

The standard commercial operation date for the power hedging agreements to be awarded will be January 1st, 2021.

Please let us know if you have any questions.

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