What to expect from Mexico’s energy reform bill

Mexico’s Congress is currently debating a proposed amendment to the constitution to allow the state to increase control over the country’s energy market. The bill would grant the state electricity company – Comisión Federal de Electricidad (CFE) – 54 percent of the power output market and control over the terms and conditions of private energy producing companies.

However, approval requires support from two-thirds of both the higher and lower legislative chambers. At the moment, the ruling party MORENA does not have supermajority in either. Supporters of the bill claim that it will end preferential treatment for private energy companies and projects funded by foreign private finance, while detractors claim it will hinder global clean energy efforts and increase energy costs.

Looking ahead, upticks in oil prices stemming from Putin’s invasion of Ukraine could alter the proposed timeline and viability of this energy reform bill.

The Adrienne Arsht Latin America Center broadens understanding of regional transformations and delivers constructive, results-oriented solutions to inform how the public and private sectors can advance hemispheric prosperity.

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Image: A worker of the Mexican state oil firm PEMEX is seen during a visit of Mexico's president Andres Manuel Lopez Obrador (AMLO) at Cadereyta refinery, in Cadereyta, on the outskirts of Monterrey, Mexico August 27, 2020. REUTERS/Daniel Becerril