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Event

Mexico’s Constitutional Changes: Energy Outlook and Implications

Date & Time

Thursday
Oct. 31, 2024
11:00am – 12:15pm ET

Location

Online Only

Overview

On October 17, the Mexican Senate approved the constitutional reform regarding strategic areas and state-owned companies. This reform is part of the 20 legislative amendments sent by former President Andrés Manuel López Obrador earlier this year. The reform strengthens state-owned enterprises Mexican Petroleum (Pemex) and the Federal Electricity Commission (CFE) and seeks to reinforce government participation over private investment in the energy sector. 

Under the new bill, Pemex and CFE will be classified as state-owned enterprises, placing them under government control. The reform grants the CFE the authority to generate 54% of national electricity without being labeled as a monopoly and mandates that the National Energy Control Center (CENACE) prioritize state-produced energy.

Moreover, the reform establishes that access to lithium extraction will be limited to the government, recognizing it as a strategic sector of the State. The reform aims to lower electricity and internet service costs while reinforcing the nation’s energy sovereignty. The implications of this shift are raising questions about market competitiveness and the balance between public ownership and private enterprise in Mexico's energy landscape.


Hosted By

Mexico Institute

The Mexico Institute seeks to improve understanding, communication, and cooperation between Mexico and the United States by promoting original research, encouraging public discussion, and proposing policy options for enhancing the bilateral relationship. A binational Advisory Board, chaired by Luis Téllez and Earl Anthony Wayne, oversees the work of the Mexico Institute.   Read more