Mexican Senate backs state power company in energy sector shake-up

In a notable shift for Mexicos energy landscape‚ the Senate has given its stamp of approval to a constitutional amendment that puts the state electricity company CFE in the drivers seat. The vote‚ which took place on 10/16/24 saw 86 senators backing the change‚ while 39 stood in opposition

The amendment which had already made its way through the lower house about a week ago‚ gives CFE a leg up over its private and foreign rivals. It mandates that Cenace (the national grid operator) must give first dibs to power from CFE plants – even if its pricier than what other producers offer

This move is part of President Claudia Sheinbaums broader strategy to tighten the governments grip on the energy sector. Its a continuation of the policy championed by her predecessor‚ Andres Manuel Lopez Obrador‚ who tried to push through similar changes during his six-year term that ended about a year ago

To become the law of the land the amendment still needs to clear a few more hurdles. It must get the thumbs-up from most state legislatures and then be published in the official government gazette. Once thats done‚ itʼll be full steam ahead for CFEs new preferential status

The ruling Morena party‚ which backs Sheinbaum‚ has been the driving force behind this shake-up. They argue its necessary to ensure Mexicos energy independence and bolster the state-owned company. However critics worry it might scare off foreign investment and lead to higher electricity costs for consumers