The impact of energy sector reform with the United States

The House of Representatives rejected, Sunday, April 17, 2022 Energy repair in electrical mattersOne of the biggest projects President Andres Manuel Lopez Obrador. The initiative aims, among other things, to give more power to the Federal Electricity Authority (CFE) and reduce private sector participation in electricity generation, which they obtained with the 2013 reform.

One of the changes included in the reform states that 46% of the private generation will be incorporated through the acquisition mechanism by the CFE. It will then require the cancellation of all electricity generation permits and electricity purchase contracts.

Because of the close business relationship that exists between Mexico s United State, AMLO’s proposal could affect both countries. In March 2022, the US ambassador to Mexico, Ken Salazar He admitted that companies from his country faced difficulties in obtaining permits to operate in all areas of the Mexican energy sector.

In addition, American organizations denounced that Energy Regulatory Authority (CRE) and the Minister of Energy of MexicoSuspension of permits related to sales, storage and service stations, and transfer of rights in the hydrocarbon sector.

US legislators They asked Mexico’s energy minister for conditions so that US companies such as Chevron and ExxonMobil could continue to operate without a hitch.

The US Department of Commerce January 2022: “The proposed reform could also impede joint US-Mexico efforts on clean energy and climate. We must maintain and enhance open and competitive energy markets for the benefit of North America.”

head the administration Joe Biden and Kamala Harris They endorsed concerns about energy reform in electricity matters and emphasized that the two countries’ treaty-based bilateral trade agendas maintain their commitment to ensuring fair treatment of US exporters and investors.

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In the end, the reform did not pass.

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