Page 4 - LatAmOil Week 24 2021

COMMENTARY Y
LatAmOil COMMENTAR LatAmOil

(Photo: IEA)
More energy reforms

ahead for Mexico?

AMLO is pushing for a constitutional amendment to protect CFE’s privileges,

and his efforts may have a significant impact on the oil and gas sector

MEXICAN President Andres Manuel Lopez a reform so that domestic users – the poor and
Obrador experienced a setback earlier this middle classes – don’t pay more for electricity
WHAT: month, when his political coalition failed to than big corporations” he told reporters in Mex-
Judicial authorities have hang on to its super-majority in either chamber ico City.
blocked past legislative of the National Congress. This shift is important, He also said that he was seeking to change
initiatives, so the pres- as it means the president can no longer presume the constitution because his previous attempts
ident is now looking to that two thirds of all legislators will support to enshrine CFE’s privileges in new legislation
change the constitution. any attempts he makes to amend the Mexican had run foul of the country’s Supreme Court. In
constitution. this situation, the government’s best option is to
WHY: Even so, it does not appear to have damp- take a different path, he commented.
Securing approval for ened his enthusiasm for making significant “If the legislators say no, I have done my part,”
amendments will be changes, some of which will affect the fuel and Lopez Obrador declared. “If they want to keep
difficult, as the presi-
dent’s coalition lost seats energy sector. Earlier this week, for example, supporting this injustice, that private companies
in the June 6 legislative Lopez Obrador said at his daily press confer- have a better deal than CFE – well, they have to
elections. ence that he intended to propose a constitutional take that responsibility. If they allow the oppor-
amendment cementing the advantage that tunity to pass, they will find it very difficult to get
WHAT NEXT: Comision Federal de Electricidad (CFE), the rid of corruption.”
AMLO may try to push national power provider, has over independent
more draft laws through companies. Policy of protection
the National Congress if The president justified his decision to cham- The president has not yet said whether he
his amendments aren’t pion CFE by saying that his aim was to protect intends to take a similar approach to the oil and
passed. consumers and prevent corruption. “We need gas industry.

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