Proposed Constitutional Reform In Mexican Power Sector

On October 1, 2021, Mexico's President Andrés Manuel López Obrador submitted to the House of Representatives a bill to amend the Mexican constitution in respect of the electric power sector. The bill aims to reassert the Mexican government's control over the electric power sector following almost a decade of decentralization and semi-privatization that has seen extensive foreign and domestic private investment. The proposed constitutional amendment comes on the heels of amendments to Mexico's Hydrocarbons Law that took effect May 5, 2021 and expanded governmental authority in the hydrocarbons industry.

In December 2013, the Mexican constitution was amended to allow the creation of a regulatory framework that ended a 75-year state monopoly in the oil and gas industry, opened the electric power sector to participation by private investors to promote competition, investment and development and decentralized governmental control and regulation of the electric power