On Thursday, the Institutional Revolutionary Party (PRI) showed receptiveness to the Energy Reform that President Andres Manuel Lopez Obrador (AMLO) proposed on Oct 1.
Related
Mexico: AMLO Accuses Foreign Firms in Transport of Stolen Fuel
After 2 weeks of tensions between political factions, the PRI leader Alejandro Moreno published an opinion piece that appeared to be positive towards the Constitutional reform recently presented to congress. In it, he invited an "open dialogue" with the government, businessmen, and experts.
AMLO's Constitutional reform seeks that the Federal Commission of Electricity (CFE) can control 54 percent of the domestic energy market, which would limit the current participation of the private sector. Despite his previous attitudes, the PRI leader now seems to support the government's role as energy producer and regulator.
"We must discuss the role of the State in an industry that has more efficient and clean electric companies," Moreno said.
Critics say that the move would hurt the nation's economy and its international risk assessment. According to the U.S. company REDD Intelligence, AMLO reform could cost private investors US$45 billion.
The main purpose of the new legislation is to assure the country's energy security and reduce the cost of electricity. In recent years, private companies have enjoyed a privileged situation that has not benefited Mexicans. In 2013, a constitutional amendment gave them control of 62 percent of the energy sector, which allowed them to increase rates for the final consumer.
This situation "went against the public interest and, in a sick way, sought to ruin our national electric industry," AMLO wrote in his book "Halfway There" (A la mitad del camino).
Newsletter
