The administration of the President of the United States, Joe Biden, endorsed its support for congressmen who have demonstrated against the electricity reform of President Andrés Manuel López Obrador, ensuring that the bilateral trade agendas based on the treaties between the two nations maintain their commitment to guarantee fair treatment for US exporters and investors.
“We understand and share your concerns regarding the constitutional reform proposed by Mexico, as well as recent actions that affect US companies and investors in the energy sector,” replied the head of commerce, Gina M. Raimondo; the Trade Representative, Katherine Tai, and Jennifer Granholm, Minister of Energy, during their visit to Mexico to explain to President Andrés Manuel López Obrador and his counterpart in Mexico, Rocío Nahle, their concerns of the US government regarding the initiative to reform the Mexican Constitution.
Through a public letter with which they responded to the Republican member of the House of Representatives, Earl L. Buddy Carter, to his public call to action last November, the officials imposed by the administration Biden-Harris assured that the trade representation of their country continues to carefully review these measures and their implications not only for bilateral trade, but also for the regional trade relationship, which includes Canada.
Therefore, they reiterated that the trip to Mexico by Secretary Granholm was intended to meet with Mexican officials to directly raise US concerns about the proposed constitutional reforms.
In her various meetings, Secretary Granholm openly expressed her government’s concerns about the constitutional reform being discussed in Congress to return the monopoly of the entire energy value chain to the Federal Electricity Commission (CFE), giving it a legal minimum of 54% of the country’s electricity generation, canceling contracts from the regime prior to 2013 and removing autonomy from sector regulators, since this would harm US companies that have invested in the country.
“The proposed reform could also hamper joint efforts by the United States and Mexico on clean energy and climate. We must maintain and improve open and competitive energy markets that benefit North America,” he said.
It is worth remembering last year President Andrés Manuel López Obrador sent to the Chamber of Deputies an initiative to reform articles 25, 27 and 28 of the Constitution, which require the approval of two thirds plus one of those present who vote. both deputies and senators.
According to the explanatory statement of the constitutional reform initiative to the Chamber of Deputies, the economic loss due to the energy not dispatched from the CFE –which is not prioritized because it is more expensive than private renewables, which are not charged for transmission and are given incentives such as clean energy certificates– amounts to 45% of the CFE’s capacity, that is, 119,000 gigawatts.
In economic terms, they mean 215.4 billion pesos annually since 2017, in addition to 222.9 billion for what they have to buy from private companies given their obligation to supply the country’s basic supplies.
The second transitory of the Law of the Electricity Industry allows self-supply companies as legacy contracts of the previous regime, with which 77,767 large consumers have been accommodated in this regime, without paying dispatch, creating private monopolies to which the company does not have access. CFE.
Thus, a dispatch of only 38% of the installed capacity of the CFE, when it has a dispatch capacity of 54 percent.