AMLO Seeks Further Energy Reforms

President Andrés Manuel López Obrador and MORENA are pushing for two significant energy reforms this year, aiming to further diminish the role of private players in the sector and limit the ability to challenge government measures through injunctions.

The first reform, part of the package of 20 constitutional reforms proposed by the president, seeks to prioritize access to electricity as a human right at affordable rates by granting priority to the federal power company CFE over private entities. This initiative faces the challenge of securing the required two-thirds majority in Congress. However, with the upcoming elections in June and a potential shift in legislative composition, there's a possibility of garnering the necessary support.

The second reform, currently under consideration in the Senate, aims to restrict judges from suspending regulations, decrees, and public works through injunctions. MORENA and its allies have sufficient votes to pass this reform, which could significantly limit legal resources against government actions.

According to BNAmericas , recent developments show progress in advancing these reforms, with the energy committee of the lower house approving the energy initiative and the senate's justice and legislative committee endorsing the injunction reform. Despite some opposition, both reforms are moving forward, signaling a potential shift in Mexico's energy landscape.

As Mexico prepares for presidential elections, energy policy remains a central issue. Both candidates, Claudia Sheinbaum and Xóchitl Gálvez, have distinct approaches to the industry. Sheinbaum, representing MORENA, wants to maintain the party's policies, emphasizing the strengthening of state-owned energy companies like CFE and PEMEX. She also emphasizes maintaining energy sovereignty and ensuring stable fuel and electricity prices. Her proposed initiatives aim to bolster the financial and operational aspects of PEMEX and CFE, aligning with the broader vision of the Fourth Transformation (4T), MORENA’s reform agenda.

On the other hand, Xóchitl Gálvez, candidate for the Fuerza y Corazón por México coalition, MORENA’s opposition, has spoken openly about allowing more private participation in the sector, advocating for legal certainty and protection to users.

Gálvez advocates for strengthening state-owned companies and making them “actually profitable.” For her, state companies should be administered by a professional independent council. Companies should stop any economic losses and focus on profitable activities, creating association opportunities to access newer technologies.