MEXICO CITY 16-Nov-2022.- The Federal Economic Competition Commission (Cofece) considered that inhibit the possibilities of private investment in electricity generation and favor the Federal Electricity Commission (CFE) reduces the country’s competitiveness.
Brenda Hernández, head of the regulatory body, issued an opinion this year against the reform initiative sent by the federal Executive to modify the articles 25, 27 and 28 of the Constitution (in September 2021)with which it was intended replace the competition model in the generation and supply of electricity for industrial model operated by an unregulated state monopoly.
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“Cofece issued an opinion in March and recommended not to approve it and reiterated the importance of maintaining competition in the generation and supply links. This initiative was not approved as it did not reach a qualified majority in the Congress.
“Although he future of energy policy will be resolved in the courts and in the supreme courtthis situation reduces competitiveness in the country, it can inhibit possibilities of private investment in electricity generation, put the existence of an electricity market at risk and favor generation plants that are not necessarily the most efficient,” Hernández stated in the webinar “Successful cases of competition policy in Latin America”.
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He also made reference to another reform to the Electricity Industry Lawwhich raised many anti-competitive precepts present in the Reliability Policy of the Electric System.
He reported that at the time the Commission issued an opinion with the recommendation of not approve the initiative because it would seriously damage the conditions of competition in the generation and sale of electricitybut it was approved in March 2021.
In this regard, he said, various economic agents filed various protection trials in specialized courts. For its part, the Commission filed a constitutional dispute before the Supreme Court of Justice.
However, the ministers did not get to the bottom of the matter and this means that the issue will be resolved in specialized courts, through the appeals filed by individuals.
But it does not mean that the rules have been declared constitutional, Hernández stressed.
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