The reform to the electrical law advances in Deputies and is approved in general

Business

By CAPosts 23 February, 2021 - 05:58pm 38 views

The Chamber of Deputies generally approved the reform to the Electricity Industry Law (LIE) sent a few weeks ago preferentially by President Andrés Manuel López Obrador. The initiative was approved by a majority of 304 votes in favor –mainly from the Morena bench–, 179 against and four abstentions. The discussion of the initiative continues this afternoon, the deputies will have to solve about 400 reservations that were made to the reform proposal. Consent is generally only the first step for the approval of the reform in the lower house of the legislature.

© iStockphoto Silhouette image. High voltage tower and Colorful sky. This has clipping path for structure.

Once approved in particular, it must be discussed and eventually approved by the Chamber of Senators within a maximum period of 30 days, in order to return to the executive and be promulgated. The reform of the Electricity Industry Law has been the latest attempt by the federal administration to legally change some of the sector's rules - which were already being implemented in practice - and increase the CFE's market share generation, one in which the state company formally lost exclusivity with the 2013 reform. The preferential initiative of President López Obrador includes all the changes that have been promoted by the Ministry of Energy and the sector regulators through policies and agreements, but which until now have not been implemented due to a series of appeals won by private companies and environmental organizations, and by a ruling by the Supreme Court in favor of the Federal Competition Commission (Cofece). So far in the discussion, the Morena legislators, the president's party and with a majority in the Chamber of Deputies, have defended that this change is the first legislative step against the energy reform, which has meant, in their words, a dismantling of the two state companies, CFE and Pemex. While the opposition parties have accused that the reform to the LIE will mean higher costs in the electric power service and a fence to renewable power plants. The presidential initiative seeks to change the order in which electrical energy is dispatched, to first use that produced by hydroelectric plants and power plants owned by the state-owned CFE - which mostly work on fossil fuels. Thus, the energy generated by renewable plants and owned by private companies would remain until the end of the line. Organizations and specialists in the sector have accused that this modification is intended to discourage the use of electricity produced in solar and wind plants, and increase the use of fossil fuels such as coal and fuel oil, the latter produced in large quantities by the state-owned Pemex. The reform also excludes the CFE from its obligation to resort to electricity auctions to contract new electricity, modifies the way in which Clean Energy Certificates are granted and makes the revocation of self-supply permits legal, a figure used mainly by consumers industrial and has grown in excess in recent years. The initiative advanced on Tuesday despite a series of arguments against it. La Cofece, the antitrust agency, has warned that the initiative violates the principles of economic competition, conditions private access to the electricity grid and represents benefits to the Federal Electricity Commission. Specialists have also warned that the reform approved so far generally violates some of the principles contained in the international treaties that Mexico has signed on trade, since it gives special treatment to a State company and does not guarantee respect for contracts signed by previous governments

Source: MSN