Sheinbaum sees Mexico's constitutional reform strengthening power company CFE

A constitutional reform to the Mexican energy sector will strengthen the position of state-owned power utility CFE, President Claudia Sheinbaum said at her daily press conference on Wednesday.

Sheinbaum was speaking as the proposal began its passage through congress, which is dominated by the premier's leftist coalition, led by the Morena party.

The reform will change the legal status of CFE, as well as national oil company Pemex, from that of a "productive company" to a "public company". 

As public companies, the main purpose of CFE and Pemex will be to serve the public and not the market, Sheinbaum said.

This change in legal status will allow the government to prioritize electricity generated by CFE rather than private operators.

"Before, the private companies had priority because of a series of rules," Sheinbaum. "Now the constitution says no: CFE has the priority."

The reform was first proposed by Sheinbaum's predecessor Andrés Manuel López Obrador. López Obrador sought to limit the role of private companies in the energy market but was at times frustrated by constitutional and judicial obstacles.

Sheinbaum has said she will continue to pursue the energy nationalism of López Obrador while being more open to private investment, especially in renewable energy.

Private players

Sheinbaum reiterated her commitment to CFE maintaining a 54% share of the Mexican power generation market, with private companies accounting for the remaining 46%,

"Our aim is not to fight with the private sector but simply to put the new rules on the table, which is the decision taken by the people of Mexico," Sheinbaum said.

She added that schemes will be designed to allow private energy companies to generate electricity in Mexico, based on "very clear rules: how they can invest, where they should invest and under what conditions in this market."