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News > Mexico

Mexico: AMLO Proposes a Reform on the Electricity Sector

  • Workers restore electricity supply to the subway, Mexico City, Mexico, Jan. 13, 2021.

    Workers restore electricity supply to the subway, Mexico City, Mexico, Jan. 13, 2021. | Photo: Twitter/ @CFEmx

Published 2 February 2021
Opinion

The reform seeks to give priority to electricity supplies generated by state-owned companies and revoke irregular contracts given to private enterprises.

Mexico's President Andres Manuel Lopez Obrador (AMLO) sent Congress a reform on the Electricity Industry Law that seeks to strengthen the public provision of services.

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The reform states that federally owned hydroelectric plants will have priority in supplying the national electricity system.

The federal government will be able to review contracts signed with private producers and ensure that permits are subject to the Energy Ministry's planning criteria.

The Energy Regulatory Commission must revoke supply permits that were obtained through fraud or other offenses prosecuted by law.

AMLO recalled that Enrique Peña Nieto's administration (2012-2018) granted full legal coverage to a massive privatization process, which was aimed at "weakening" public companies and transferring them later to individuals.

"The initiative will put an end to price simulation in a market that favors speculation, dumping, and subsidies granted to private participants," AMLO said.

The Lower House must debate the reform within a maximum of 31 days, thereafter, the bill will be sent to the Senate.

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