On the Migration Procedure in the Electricity Sector
On June 18, 2026, the Guidelines for the Voluntary and Expedited Migration of Self-Supply and Cogeneration of Electric Power to the schemes provided under the Electricity Sector Law (the "Guidelines") were published. Through these Guidelines, the Ministry of Energy established a temporary and exceptional procedure allowing holders of self-supply and cogeneration permits that continued operating under the Public Electricity Service Law (Ley del Servicio Público de Energía Eléctrica, or "LSPEE" for its acronym in Spanish) abrogated on August 11, 2014, to voluntarily migrate to the schemes established under the Electricity Sector Law (Ley del Sector Eléctrico, or "LSE"), which has been in force since March 19, 2025.
As this is a voluntary mechanism, the permits and agreements granted under the LSPEE that are not subject to migration or whose holders choose not to migrate, will remain in force until the expiration of their respective terms and will continue to be governed by the legal framework and conditions under which they were originally issued. In particular, those who are now wishing to participate in the Wholesale Electricity Market ("MEM") as generators may no longer do so under the schemes used before; instead, they must migrate the entire capacity associated with such projects to one of the generation schemes provided under the LSE and operate in accordance with the rules applicable to the electricity market.
Accordingly, the Guidelines seek to facilitate the regulatory transition through a streamlined procedure that eliminates several requirements normally requested for new projects. Among the main benefits are the continuity of operations throughout the migration procedure, the ability to retain existing infrastructure, the exemption from new interconnection studies, and an orderly transition to generation schemes for participation in the MEM, self-consumption, or electricity supply.
Eligible Parties and Migration Schemes
The Guidelines apply to self-supply and cogeneration permits granted under the LSPEE that are associated with power plants having a capacity of 0.7 MW or greater, as well as to the agreements and contracts related thereto (each referred to as a "Legacy Permit").
Although participation in the migration procedure is voluntary, once the migration is completed, its effects are final. In other words, the issuance of a permit under the LSE entails a waiver to the self-supply or cogeneration permit granted under the LSPEE, as well as the early termination of the agreements and contracts associated therewith.
The Legacy Permits may migrate to any of the following generation schemes provided under the LSE: (i) isolated self-consumption; (ii) interconnected self-consumption; or (iii) generation for participation in the MEM. Applicants may also choose among the different migration modalities set forth in the Guidelines, each of which entail specific regulatory, technical, and operationalrequirements that must be satisfied both during the migration procedure and after the transition is completed.
Migration Procedure
Pursuant to article 15 of the Guidelines, applicants may elect to migrate their Legacy Permit under any of the following modalities:
I. Migration of power plant;
II. Joint migration of power plant and load centers to a power generation permit for participation in the MEM;
III. Migration of end users to qualified user status;
IV. Migration of end users to basic supply;
V. Joint migration of power plant and local loads to an interconnected self-consumption power generation permit; and
VI. Joint migration of power plant and local loads to an isolated self-consumption power generation permit.
The chart below details the key milestones of the migration procedure applicable to all of the migration modalities described above. It is necessary to review the specific modality selected under article 15 of the Guidelines in order to identify and ensure compliance with the activities required at each stage of the migration process.
| Stage | Activity | Dates |
|---|---|---|
| First | Registration of the notice of intent to participate in the migration procedure. | June 19 to September 18, 2026 |
| Second | Submission of the migration application. | September 21 to October 16, 2026 |
| Third | Warning period and, where applicable, admission or dismissal of the application, as the case may be. | (a) Review of applications and issuance of warning notices: October 19 to November 20, 2026. (b) Response period for warning notices: November 23 to December 11, 2026. (c) Admission or dismissal of applications: October 19 to December 24, 2026. |
| Fourth | Resolution issued by the National Energy Commission and, where applicable, the issuance of the corresponding permit, the removal of the load centers from the Legacy Permit, and, if applicable, registration in the qualified users registry. | December 28, 2026 to February 12, 2027 |
| Fifth | Verification of the functionality of the metering systems for, where applicable: (i) the power plants or (ii) the load centers, and confirmation of their compliance. | October 19, 2026 to February 12, 2027 |
Upon completion of the Fifth Stage, if the selected migration modality is one of those set forth in sections I, II, V, or VI abovementioned, the migration procedure would continue as follows:
| Stage | Activity | Dates | |
|---|---|---|---|
| Sixth | Prior registration of the physical assets by the market participant acting as generator representing the power plant or, where applicable, by the market participant acting as supplier representing the end users upon migration. | February 15 to March 5, 2027 | |
| Seventh | Compliance with the conditions set forth in article 5, sections VI, VII and IX of the Guidelines. | Compliance with the conditions set forth in article 5, sections VI and VII of the Guidelines. | February 15, 2027 to August 15, 2028 |
| Completion of the minimum operational tests set forth in article 5, section IX of the Guidelines. | February 15 to April 30, 2027, and October 1, 2027 to April 28, 2028 | ||
| Eighth | Formalization of the interconnection agreement or connection agreement, and the early termination of the legacy agreements and the ancillary agreements related thereto, as well as the removal of the corresponding load centers from the applicable legacy permits. | February 15 to April 30, 2027, and October 1, 2027 to April 28, 2028 |
|
| Ninth | Change of the status of registration of the physical assets to "enabled" and commencement of operations in the MEM. The migration procedure is deemed completed upon the registration status being changed to "enabled." | October 6, 2028 | |
On the other hand, if the selected migration modality is one of those set forth in sections III or IV referred above, upon completion of the Fifth stage applicable to all migration modalities, the migration procedure would continue as follows:
| Stage | Activity | Date |
|---|---|---|
| Sixth | Formalization of the connection agreement, where applicable, as well as the removal of the load centers from the legacy agreements and the ancillary agreements related thereto. | March 8 to April 2, 2027 |
| Seventh | Registration of the physical assets with "enabled" status by the market participant acting as supplier representing the load centers upon migration, and its notification to the carrier or distributor. | September 5 to September 23, 2027 |
| Eighth | Compliance with the metering system requirements set forth in article 5, section VI of the Guidelines. | February 15, 2027 to August 15, 2028 |
Benefits and Risks of the Migration Procedure
As discussed above, the Guidelines introduce several administrative simplification measures, including the continuity of operations throughout the migration procedure, the exemption from the requirement to conduct new interconnection studies, and the preservation of previously authorized installed capacity, which may be migrated without the need to obtain a new generation permit, among other benefits.
On the other hand, the migration procedure also entails certain risks and considerations that should be carefully evaluated, among which are: (i) the permanent relinquishment of the previous legal regime; (ii) the accreditation and compliance with specific regulatory, technical, and operational requirements; and (iii) the adherence to strict, non-extendable deadlines. Therefore, it is essential to conduct a prior comprehensive assessment of the economic, contractual, and regulatory implications associated with the decision to migrate.
Considering the deadlines set forth in the Guidelines, we recommend that permit holders and associated users begin with a regulatory and technical assessment that will allow them to determine the feasibility of migration and their ability to comply with the mandatory deadlines, and, where appropriate, to identify the migration modality that best aligns with their operational characteristics.
Should you decide to pursue a migration procedure, we at JATA can provide legal advice and support in reviewing existing contractual obligations, as well as in preparing and compiling the documentation required to comply with the deadlines and requirements set forth in the Guidelines.
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