On April 17, 2022 the Chamber of Deputies debated the constitutional amendments on energy matters proposed by president Andres Manuel Lopez Obrador at the end of September 2021 (the “Initiative”). The Initiative aimed to decrease private participation to 46% of the total electricity generated in Mexico; to guarantee that 54% of such production would come from the State-owned Federal Electricity Commission (“CFE” per its Spanish acronym); and to establish that the generation and supply of electricity would belong exclusively to the State, among other changes which would limit the involvement of private investment, whether domestic or foreign, in a sector of vital importance for Mexico.
After more than 10 hours of discussion, the Initiative was dismissed for failing to reach 332 votes out of 498 attending deputies, receiving 275 votes in favor from MORENA and allied parties, and 223 votes against from PAN, PRI, PRD, and MC. Therefore, the Initiative fell short of the two-thirds super-majority required to continue with the procedure of enacting a constitutional amendment.
Going forward, the energy sector’s constitutional framework will not be changed and private companies will continue to be able to invest in and develop electricity generation and supply projects. Likewise, consumers will continue to have alternatives for procuring electricity from the electricity market.
The attorneys in CCN’s energy practice group are available to respond to questions from readers in connection with the current Mexican legal environment generally, or specific projects and issues.
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