Mexico's Chamber of Deputies Approves Sweeping Energy Reform
The Chamber of Deputies in Mexico approved a reform to strengthen state control over energy sectors. The legislation reclassifies state-owned companies, grants the state exclusive control over strategic sectors and prioritizes the energy transition.
In a decisive move that marks a significant shift in Mexico's energy sector, the Chamber of Deputies approved a constitutional reform with a qualified majority of 353 votes in favor, 122 against, and no abstentions. The reform alters the legal status of "productive companies of the State" to "public companies of the State," fortifying government control over key industries and reinforcing the state's role in driving the country's energy transition.
The sweeping changes, which amend the fifth paragraph of Article 25, the sixth and seventh paragraphs of Article 27, and the fourth paragraph of Article 28 of Mexico’s Political Constitution, aim to cement the state-owned company’s dominance in the electrical sector. The reforms clarify that while private participation in electricity production will continue, it will not take precedence over the state-run entity, which is tasked with ensuring continuous service and affordable access to electricity for the population.
