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    AMLO's electricity reform represents a high risk to Mexico's energy security: Canacintra

    November 23, 2021 - CE Noticias Financieras


      Foto EE: Archivo

      The electricity reform initiative of President Andres Manuel Lopez represents a high risk to the country's energy security, lacking a regulatory framework in the field and does not present a legal sustainability by promoting the Federal Electricity Commission (CFE) as the predominant energy supplier, said Juan Manuel Chaparro Romero, president of the Industrial Development Commission of Canacintra.

      "The insistence of the current government to promote the approval of its electricity reform initiative through changes in articles of the Constitution, would adversely impact our country in terms of economic, environmental and health growth; it would impact industrial development in all productive sectors of the country causing irreversible damage in the medium and long term, since it would stop, discriminate, and even scare away the participation of the national and international private sector through the absence of their investments," said Juan Manuel Chaparro.

      He mentioned that the national businessmen agree on the need for a strengthened and competitive electricity industry, but in no way agree with the electricity proposal promoted by the Federal Government, as it represents a high risk.

      In an interview, the representative of Canacintra proposed to abandon the electricity reform initiative, or otherwise, Mexico, its industry, its economy and the population will pay the consequences.

      For the industrialist, no energy policy should base its future on the use of coal or polluting fuels, if it does, he warned that it would be anti-competitive due to increases in costs that would involve in power generation and irreversible damage to the environment and the health of Mexicans, with carbon emissions, although the Mexican government denies its use.

      The electricity reform is against the use of new technologies and international trends to reduce environmental pollution to the extent of generating zero polluting emissions to our environment.

      In addition, it does not guarantee equity within the electricity market by limiting and reducing the participation of the private sector in the energy sector.

      "Limiting free competition further increases the distrust of investors by changing regulations on the fly that affect investments made and to come, so Mexico should encourage more investment and provide legal certainty, rather than violate the rule of law on these," said Juan Manuel Chaparro.

      For the representative of the Canacintra, the national industry requires cheaper energy, but without subsidies, to reduce their production costs and be more competitive, so if the government resorts to subsidies in electricity rates to "cover" the increase in these, then it would be contributing to a major problem "triangulated" to other areas the excess of costs-expenditures, affecting public finances.



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