Mexican employers warn of energy reforms' impact on competition and renewables

Mexican employers' confederation Coparmex has warned that controversial energy reforms could harm free competition and restrict access to renewable energy.

The reforms, which were approved by both houses of congress last week, will convert national oil company Pemex and state electric power utility CFE from "productive companies" into "public companies."

The change in status will provide them with a legally privileged position in the markets where they operate. 

The reforms specify that power generated by CFE will have priority over electricity produced by other firms such as privately owned wind farms and solar power plants.

In a press release on Sunday, Coparmex said the reforms "lead us to be concerned by the impact that this concentration of power will have on free competition and on access to clean energy, especially for small and medium enterprises."

Coparmex said SMEs play a key role in generating clean power and in improving energy efficiency.

The group also said it was essential for SMEs to participate in the official working groups that will discuss the secondary legislation that will govern the energy market following the reforms.

Investments in both public and private infrastructure, and policies that ensure an efficient and fair market, are needed to strengthen the country's energy security and support the clean energy transition, the confederation said.