- The Mexican Senate approved a constitutional reform increasing state control over the energy sector.
- The reform aims to provide low-cost electricity and internet services while allowing public enterprises to dominate the market without being classified as monopolies.
- The reform now requires approval from state congresses and could reshape Mexico’s energy landscape, strengthening state control while raising concerns about potential economic impacts.
The Mexican Senate approved a constitutional reform to increase state control over the energy sector, focusing on electricity. The reform redefines the Federal Electricity Commission (FEC) and Pemex as public enterprises, allowing them to compete directly with private companies.
Lawmakers passed the reform with 86 votes in favour, 39 against, and one abstention. Former President Andrés Manuel López Obrador strongly supported the amendment. It now awaits approval from at least 17 of Mexico’s 32 state congresses, many of which are controlled by the ruling Morena party.
The reform aims to provide citizens with low-cost electricity and internet services. A key provision states that public enterprises producing over 50% of the energy will not face classification as monopolies, allowing flexibility in the market while maintaining state dominance.
President Claudia Sheinbaum and the Morena party championed the reform, which reverses parts of the 1992 and 2013 amendments that opened the energy sector to private investment. Pro-government Senator Laura Itzel Castillo emphasised that the reform reclaims Mexico’s energy sovereignty.
Opposition parties voiced concerns. Imelda Sanmiguel of the conservative National Action Party (PAN) argued that the reform would impose the financial burdens of CFE and Pemex on citizens, potentially harming the economy
López Obrador introduced the reform in February, but Morena lacked the two-thirds majority needed for approval. After the June elections, Morena and its allies secured enough support to pass the reform.
This reform reshapes Mexico’s energy landscape by increasing state control. The government intends to lower energy costs and improve citizens’ access while controlling essential resources.
State congresses must approve the reform, followed by coordinated efforts between public enterprises and government agencies to implement the new policies. The reform aligns with Morena’s broader agenda to centralise control and reverse policies favouring private competition.
If fully implemented, the reform strengthens CFE and Pemex’s market presence, reducing private companies’ influence. Critics argue that this could stifle competition and lead to inefficiencies.
The Senate clarified that the reform modifies three constitutional articles. It aims to prioritise public welfare by ensuring affordable energy and internet access. While public companies will dominate the market, the reform includes measures to prevent monopolistic practices, leaving room for private-sector involvement.
The outcome depends on state congress approval. If passed, it will shift the balance between public and private entities in Mexico’s energy sector, giving the state greater control while raising concerns about potential economic risks.
In the coming months, state and federal governments must coordinate closely to ensure successful implementation and address concerns about the reform’s long-term impact on the economy and energy market.