CFE’s primacy over IP in energy generation is endorsed

Last night, Morena and its allies approved in committees changes to articles 27 and 28 of the Constitution to return Petróleos Mexicanos (Pemex) and the Federal Electricity Commission (CFE) to the status of public companies of the Mexican State, a measure to reverse the status of productive companies imposed on them by the 2013 energy reform.

“This is a small step that fully recovers the State’s leadership, not just regulatory leadership” in energy matters, celebrated the president of the Constitutional Points Commission, Juan Ramiro Robledo (Morena). The PRI coordinator, Rubén Moreira, asked to clarify whether the change in Pemex’s status will imply that its debt will become a fiscal obligation of the State, but Morena did not respond.

The bill was approved by 21 votes in favor and 16 against, and the commission stated that it is expected to be voted on in the full House in October. One of the central axes of the reform defined the prevalence of CFE in the electricity market over private generators, and specified that the activities of the public company will not constitute a monopoly.

For more than four hours, the legislators of the commission debated the initiative on the matter of the electric market presented by the Executive; in the particular discussion, Rosendo Medina (Morena) presented a reservation that expands the scope of the amendment.

The reserve added four points. The first, in the case of CFE, detailed that as a public company of the State “its essence is to fulfill its social responsibility and guarantee the continuity and accessibility of the electricity service”, as well as to provide energy at the lowest possible price.

The second prohibits concessions for the exploitation of lithium. In addition, it defines that the State will be in charge of the energy transition and will use energy sources sustainably to reduce greenhouse gas emissions.

The fourth point was that the Federal Telecommunications Institute maintains its authority to grant broadcasting concessions; this will be removed from the reform that seeks to eliminate autonomous bodies. Later, the commission approved changes to prohibit the cultivation, consumption and importation of transgenic corn, but the importation of cracked corn will be permitted.