The Government of Mexico has enacted a new regulation governing the Federal Electricity Commission (Comisión Federal de Electricidad, CFE), the nation’s state-owned utility and largest electricity provider. Published on December 2, 2025, in the Diario Oficial de la Federación, the decree replaces the previous framework in force since 2014 and introduces updated rules for governance, internal controls, procurement and sustainability—key areas for Mexico’s evolving energy market.
The updated regulation aims to enhance transparency, operational efficiency, internal auditing and the strategic alignment of CFE with national energy and sustainability policies. It is part of Mexico’s broader effort to modernise regulatory structures at a time of increasing demand for transmission, distribution and generation infrastructure, alongside accelerated investment in renewable energy, grid integration and energy storage.
Key provisions include strengthened rules for the composition and functioning of CFE’s Board of Directors, including clearer procedures for appointing and removing board members, stricter requirements to identify and prevent conflicts of interest, and broader public disclosure of information and board records. The decree also reinforces the responsibilities of internal committees—such as the Special Committee—by establishing new guidelines for decision-making, documentation and operational accountability. CFE subsidiaries must now align their activities with the company’s Development Program, adopt compliance measures and operate under updated austerity principles.
In terms of oversight, the regulation mandates the application of international auditing and financial reporting standards, while defining the scope of internal and external audits as well as those conducted by Mexico’s Superior Audit Office.
The document also introduces significant changes to procurement, leasing and public works. Updates include the incorporation of ascending and descending auctions, new thresholds for direct awards and restricted invitations—adjusted annually for inflation—stricter criteria for emergency contracting, and reinforced processes to evaluate suppliers’ integrity and compliance. A detailed section outlines the procedure for reconsideration requests, addressing timelines, documentation requirements, suspension rules, guarantees and the legal effects of resolutions.
Sustainability is another central component of the regulatory update. CFE’s Sustainability Plan must now align with Mexico’s National Energy Transition Strategy, sectoral plans for electricity and hydrocarbons, and the country’s international environmental commitments. This framework supports long-term planning for electricity infrastructure development in line with global standards, particularly in renewable energy deployment, emissions reduction and grid modernisation.
The decree also defines the responsibilities of the Persona Comisaria, the official in charge of preparing CFE’s annual performance evaluation. This report must be made publicly available on the company’s website and on the platform of the Secretariat for Anti-Corruption and Good Governance. Transitional provisions indicate that the performance evaluation for fiscal year 2024 must be published no later than December 31, 2025.
With this new regulation, the Government of Mexico aims to strengthen CFE’s governance, improve transparency and reinforce institutional controls. The update arrives at a critical moment for the national electricity system, supporting the modernisation of the sector as Mexico advances renewable energy development, grid expansion and long-term investment planning.
