Company: TNRSF
Filing Date: 2025-04-01
Form Type: 20-F
Source: 0001554855-25-000262
Chunk: 21

Company: TENARIS SA
Filing Date: 2025-04-01
Form: 20-F
Item: Item 17
Chunk 21
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 over the last years. Although the Mexican government has implemented various security measures and has strengthened its military and police forces, drug-related crime continues to exist in Mexico. Our business may be materially and adversely affected by these activities, their possible escalation and the violence associated with them.

In the last few years, the Mexican government has made, and has attempted to make, various amendments to

energy

rules and regulations that impact

energy supply and cost

structure

. Since December 2018, the Mexican government has

been

introduc

ing

changes to electricity regulations, including amendment

s

to the Energy Industry Law (“ LIE”), and a bill to reform the Constitution,

which was

rejected by the Mexican Congress

in 2021. These changes aimed to

grant priority to Mexico’s state-owned electric power generation and distribution company

Comisión Federal de Electricidad

(“ CFE”), over private generators in the supply of electric power to the Mexican market and mandate

d

a revision of power generation and transaction agreements between CFE and independent electric power suppliers. The intended reforms were challenged in court

and, i

n January 2024, the Supreme Court ruled against the constitutionality of certain provisions of the LIE reform. In response, the Mexican President announced a new proposal for an ambitious constitutional reform, which covers a wide range of topics, including energy matters

.

During 2024, the Mexican Congress approved several constitutional reforms aimed at restructuring the judicial system and increasing state control over key sectors, including energy, telecommunications, and natural resources. For example, changes have been introduced to the constitutional status of CFE and Pemex, resulting in increased government intervention in their policies at the expense of their boards’ independence. This increased regulatory oversight has led to a more unpredictable business environment. In particular, the energy reform has introduced significant regulatory and legal uncertainties for energy companies, affecting their operations, financial performance, and strategic planning. Companies have had to navigate a complex and evolving regulatory landscape, invest in compliance programs, and reassess their investment strategies to mitigate the risks associated with these reforms.

Uncertainty remains as to whether

the Mexican government or any of its decentralized bodies will introduce new reforms to the energy market or adopt any measure that may further affect the energy supply or increase its cost.

Any such new amendment or measures could negatively affect the operations of Tubos de Acero de Mexico S. A. (“ Tamsa”) or Techgen S. A. de C. V. (“ Techgen”), the power