Mexican lawmakers to vote on president’s contentious electricity overhaul -Breaking
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© Reuters. This is a general view of high-voltage power lines belonging to Mexico’s government-run electric utility, the Federal Electricity Commission, Santa Catarina (near Monterrey), Mexico, February 9, 2021. REUTERS/Daniel BecerrilMEXICO CITY, (Reuters) – Mexican legislators were scheduled to vote Sunday on a Constitutional Reform of the Electricity Sector. The reform was championed in part by President Andres Manuel Obrador who seeks to expand state control over the market and to reduce the role of private players.
He has sought more control over the state, and he cites legislation as essential for his plan to “transform” Mexico. Mexico’s largest trading partner has criticised the reforms.
The opposition alliance has also refused to support the legislation. Therefore, the government will likely fail to get the required two thirds of votes.
Lopez Obrador is trying to capitalize on last weekend’s victory and has suggested that those opposing his signature legislation be considered “traitors” in order to push ahead.
He argued that previous governments had rigged markets in the favor of private interest and stated the reform would increase Mexican independence from foreign-owned farmers.
Lopez Obrador argued that the overhaul was necessary to maintain a tight grip on energy prices. It would give the state-owned electric company Comision Federal de Electricidad more power over the market. CFE plants, whose electricity prices are controlled by the government, will be allowed to sell before any other generators.
President’s reform would shift energy regulation away from state bodies and to independent regulators. This will reverse previous constitutional amendments.
CFE would then generate 54% total country electricity, and it would not be required to deliver the lowest electricity.
Business groups, as well as some of Mexico’s most trusted allies, have raised concerns regarding his energy legislation. These concern that it is inconsistent with the United States-Mexico Canada Agreement.
Lopez Obrador has won. Mexico’s Supreme Court upheld controversial amendments to the electricity law that had been blocked last year by lower courts. Although the court found that a majority of justices supported striking down important parts of this bill, it did not achieve the two-thirds majority needed to declare them invalid.
In a sign of possible legal problems ahead, Senator Emilio Alvarez Icaza, an opposition senator, filed this week a challenge.
Mexico would be able to nationalize its lithium mines through the reform.
Lopez Obrador stated that, if the Constitutional Reform fails to pass, he will send another bill to Congress in order to obtain Mexico’s lithium. This would ensure at least a portion of the Bill passes.
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