The Mexican Senate has approved a constitutional reform aimed at strengthening state control over the energy sector, particularly electricity. This reform redefines the status of the Federal Electricity Commission (CFE) and the national oil company Pemex, now classifying them as public enterprises rather than productive enterprises, placing them in direct competition with the private sector.
The amendment, supported by former President Andrés Manuel López Obrador, received 86 votes in favor, 39 against, and one abstention, according to legislative body statements. After its approval by the deputies the previous week, the reform now needs to be validated by at least 17 of the 32 state congresses in the country, most of which are dominated by the ruling Morena party.
Objectives of the Constitutional Reform
The modification of three articles of the Constitution aims to provide the Mexican people with electricity and Internet services at the lowest possible price, the Senate specified in a statement. One key point establishes that if a public enterprise generates more than 50% of the energy in the market, it will not be considered a monopoly, thus allowing some flexibility in the energy market.
This reform is supported by President Claudia Sheinbaum and the Morena party. It marks a partial return to the constitutional amendments of 1992 and 2013, which had opened the sector to private capital. According to pro-government Senator Laura Itzel Castillo, this reform allows firm steps to reclaim the country’s energy sovereignty.
Political Reactions and Implications
On the opposition side, Imelda Sanmiguel from the conservative National Action Party criticizes the reform by stating that it aims to impose the deficit in which CFE and Pemex operate on citizens. She believes that this initiative could lead to negative economic consequences for consumers.
The reform was initially presented by López Obrador in February, at a time when the Morena party did not hold the two-thirds majority in the federal Congress necessary for its adoption. However, following the general elections on June 2, Morena and its allies succeeded in advancing this and other constitutional reforms, including the reform of the judicial system, which now provides for the election of judges and magistrates by universal suffrage.
Future Prospects for the Mexican Energy Sector
The constitutional reform could significantly transform Mexico’s energy landscape, strengthening the role of the state in a sector historically open to private competition. This centralization aims to ensure increased accessibility of energy services for the population while maintaining national control over essential resources.
However, implementing these changes will require close coordination between different levels of government and the concerned public entities. The next steps include approval by the remaining state congresses, which will determine the scope and effectiveness of the proposed modifications.
