Senate Open to Dilute Energy Reform

MORENA senators are drafting potential changes to the government’s energy reform, which would dilute the president's original proposal as to evade complaints from commercial partners and arbitration under USMCA, say analysts. The reform is still being discussed in Congress and has caused concern from US stakeholders during the Open Parliament discussions.

The newly proposed changes include the gradual elimination of pre-2014 Energy Reform generation contracts and the increase in transmission tariffs for self-suppliers. The insights, gathered by REDD Intelligence, come after the meeting between the Mexican government and US Climate Envoy, John Kerry. Kerry traveled to Mexico City to voice the US’ concerns regarding the reform.

Ricardo Monreal, President of the Senate's Political Coordination Board (JUCOPO) and parliamentary leader of MORENA, has shared multiple declarations in line with REDD’s insights.  He has assured the disposition of his parliamentary group to build bridges with the business sector and to listen to the opposition, as their votes are required for the reform’s approval in both chambers.

Monreal promised that the Senate, in its role as a reviewing Chamber, will act responsibly and objectively to try and achieve a balance in how energy sovereignty is protected without affecting the interests of investors. During his meeting with the Consumer Products Industry Council (CONMEXICO), Monreal acknowledged the contributions of businessmen to Mexico’s economic recovery and highlighted the close collaboration between the Senate and the private sector.

Monreal also celebrated the creation of the High-Level Group on Renewable Energies and Climate Change, which came after the meeting between López Obrador and Kerry. Additionally, Monreal announced he will meet with US legislators to analyze the implications of the energy reform within the next few days.

Monreal did not meet Kerry during the envoy’s visit. However, he acknowledged that López Obrador’s energy reform created uncertainty in the bilateral relationship with the US.  Joe Biden's administration showed clear concern regarding the reform’s effects on the security of US investments and progress in combating climate change. Monreal recognized the importance of a visit from US Secretary of Energy, Jennifer Granholm, as well as the presence of Ambassador Ken Salazar during the Open Parliament.

Ricardo Monreal is one of the main parliamentary leaders in the current Senate legislature. For previous reforms from President López Obrador, Monreal had been a key figure in negotiations with the opposition to acquire the votes needed for their approval. His ability to find middle ground and openness to dialogue differ from positions taken by some of his party’s peers. Monreal is also a potential presidential candidate for Mexico’s 2024 elections.