Mexico's leftist government on Friday pitched a constitutional reform to boost state control of the electricity market, in a move to reverse business-friendly energy legislation enacted by the previous administration, Trend reports citing Reuters.
The reform announced by President Andres Manuel Lopez Obrador foresees giving the Comision Federal de Electricidad (CFE) over half of the power market and putting it in charge of setting terms for private generators.
According to a copy seen by Reuters, the bill Lopez Obrador sent to Congress on Thursday would also reserve future lithium extraction for the state and do away with energy regulators, grouping their functions under the Energy Ministry and the CFE.
Though Lopez Obrador had hinted at much of the bill's content, its elimination of nominally independent regulators even drew criticism from some of his erstwhile loyalists.
"The disappearance of the National Hydrocarbons Commission is a step back for the regulation of the energy sector," said Martha Barcena, Lopez Obrador's former ambassador to the United States, referring to the oil industry regulator.
Lopez Obrador said giving the CFE 54% of the power market would keep prices low for consumers and end preferential treatment for private firms, which he argues has been excessive.
"We are trying to compensate for the damage caused by the so-called energy reform," he told a news conference, referring to the previous administration's 2013-14 opening of the energy market to private capital.