Mexico's lower house sets dates for energy reform discussion

Mexico’s lower house has laid out a schedule for an open discussion on a constitutional reform proposal that seeks to strengthen federal power company CFE and its control over the country’s electricity market.

In an agreement published by the chamber, legislators said discussions would take place between January 17 and February 15, in 19 forums focused on five topics.

The first forum will analyze the electric power market before and after the 2013 energy reforms; the second will look at the role of the state in Mexico’s electricity industry; the third will compare the results of the 2013 reform with its objectives; the fourth will consider the constitutionality and legality of the reform proposal; and the last will discuss issues like climate change and the energy transition as they pertain to the reform initiative.

Earlier this week, the president of the political coordination board (JUCOPO), deputy Rubén Moreira, said that if an agreement is struck between the ruling coalition and the opposition on the reform, the new text would not be voted on before the governor elections in June 2022.

Ruling party Morena must secure the support of two thirds of members present during the vote in both houses of congress to pass a constitutional reform. With a full lower house, the ruling coalition would need the support of 333 legislators. Morena, together with allies PT and PVEM, currently hold 279 seats.

In the senate, Morena and its allies have 75 of the 128 seats.

The reforms seek to undo the 2013 opening of the Mexican electricity sector. If approved as proposed, they would prop up CFE by giving it priority in dispatch over other generators, cede powers held by independent regulators to energy ministry Sener and CFE itself and cancel current power generation and sales contracts, opening the door for a CFE-led renegotiation.