AMLO expects the Senate to approve electricity reform tomorrow

President Andrés Manuel López Obrador (AMLO), confided this Sunday that the Senate of the Republic approve the reform to the Electricity Industry Law, which seeks to privilege the Federal Electricity Commission over other companies.

The purpose of the law is to guarantee reliability and a price rate system.  |  Photo: Cuartoscuro

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The purpose of the law is to guarantee reliability and a price rate system. | Photo: Cuartoscuro

During his work tour of Tlaltenango de Sánchez Román, Zacatecas, AMLO assured that this law will strengthen the Federal Electricity Commission.

“I am sure, it will be put into practice, it will be executed, it will be approved because it is to strengthen the Federal Electricity Commission (CFE).”

Andrés Manuel López Obrador, President of Mexico.

The Chief Executive Officer explained that “the same treatment cannot be given” to the state company as to foreign companies, as did previous governments.

“They advanced a lot in the privatization of oil and the electricity industry, but fortunately the change took place, the people said ‘enough with the robbery, with the looting’, especially of foreign companies.”

Andrés Manuel López Obrador, President of Mexico.

AMLO ha promised “Rescue” the CFE, which in 2020 lost 78,919 million pesos and on other occasions he has mentioned that “The looting that took place during the neoliberal period is unprecedented” and has even mentioned that it was “Greater than in the three centuries of colonial rule.”

What changes does this reform propose?

One of the actions of the initiative is that dispatch preference is given to CFE’s hydroelectric, geothermal, thermoelectric and combined cycle plants and thirdly, solar and photovoltaic energy from private companies.

Currently the dispatch is by merit, entering the cheapest power plants such as dollars and photovoltaic.

Video: The News with Martín Espinosa: PRI will initiate unconstitutionality action on electricity reform in the SCJN (Dailymotion)

Another of the modifications and that had already been proposed in 2019, refers to the Clean Energy Certificates Law (CELs) that will allow the CFE obtain these certificates to the detriment of investments under this scheme.

In addition to the new law being approved, it would allow CFE Basic Supply, acquire energy, potential and CEL’s outside the auctions, so that CFE will be able to decide who to buy from, regardless of whether it is more expensive.

In another point, he points out that the Energy Regulatory Commission (CRE) can revoke self-supply permits and review contracts of Independent Energy Producers (PIE).

In addition, the theme of the reliability of the Electrical System, something that has been promoted previously by the Ministry of Energy (SE) and the National Center for Energy Control (Cenace).

Will the initiative of the Electricity Industry Law affect or benefit?

The initiative, which reforms article 3 of the Electricity Industry Law, has the purpose, among other actions, “guarantee reliability and a price tariff system, which will only be updated due to inflation, that is, electricity rates will be maintained.

“With the simultaneous operation of both financial and physical delivery contracts, budgetary expenditures with a negative impact on taxpayers and economic resources of the nation are eliminated and, with this, stability in the electricity rate is guaranteed.”

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