Alex Vasquez, Bloomberg News

MEXICO CITY
EnergiesNet.com 11 10 2024

Mexican lawmakers took the first step toward granting President Claudia Sheinbaum’s administration more control over state oil firm Petroleos Mexicanos and electricity utility Comision Federal de Electricidad.

The general text of the bill was passed late on Wednesday by the ruling coalition’s supermajority in the lower house of Congress. It seeks to reclassify both Pemex and CFE from “state productive companies” to “public companies,” forcing them to prioritize the government’s social and economic objectives over corporate profits. 

The bill also aims to ensure that Pemex and CFE make decisions that are aligned with the interests of Mexico’s government rather than the private sector, Energy Minister Luz Elena González said earlier on Wednesday. The reclassification was the brainchild of Sheinbaum’s predecessor, ex-President Andrés Manuel López Obrador. 

The change would make the government control 54% of domestic electricity supplies, with the remainder managed by private companies. Critics of the project worry it will discourage private investment, especially in electricity transmission, and hinder the transition away from fossil fuels. 

The legislation would also eliminate lithium concessions and reserve the sector for the national government. 

Lawmakers will continue discussing individual articles of the bill, but its main objectives will remain part of the legislation. 

The proposal is set to go to the Senate, where the ruling coalition only needs one more vote to reach the two-thirds majority necessary to pass such a constitutional change.

bloomberg.com 10 10 2024