Mexican president sends bill to Congress to change power industry rules (updated)
01/02/2021 21:39
(Adds context, background)
MEXICO CITY, Feb 1 (Reuters) - Mexican President Andres
Manuel Lopez Obrador sent a draft bill to Congress on Monday
that aims to change electricity industry law in his efforts to
boost state-owned companies in the sector.
The provisions of the bill, which lawmakers must discuss
within 30 days, are likely to fan conflict with independent
power providers, fuelling debate over its fit with the previous
government's opening of the industry to private capital.
The measure looks to give preference in electricity dispatch
to the state-run Comision Federal de Electricidad (CFE), and
seeks to eliminate its obligation to buy electricity through
auctions.
It also orders a review of how beneficial electricity
purchase pacts with independent producers could be for the
government.
"It is urgent to deepen the changes already initiated in
this matter, in order to strengthen the (...) CFE for the
benefit of the national interest," the text read.
Lopez Obrador has been a trenchant critic of the previous
administration's energy reform, saying it skewed the market to
favor private companies at the expense of the CFE and state oil
company Petroleos Mexicanos (Pemex).
(Reporting by Adriana Barrera; writing by Laura Gottesdiener;
Editing by Marguerita Choy and Clarence Fernandez)
((laura.gottesdiener@thomsonreuters.com;))