Remuneration to private companies is already being prepared for the electricity reform: analysts

The Mexican state is preparing the indemnities for the companies whose contracts will be canceled as soon as the constitutional reform in electrical matters, although it will virtually not be necessary because these firms that are already established or newly established in the country will seek to be state contractors under the new regime, even if their acquired rights are violated and a state monopoly is established. analysts consider.

Francisco Barnés de Castro, who is a member of the governing body of the Energy Regulatory Commission (CRE), explained in the fifth forum of the Open Parliament of the Chamber of Deputies on the initiative of the President Andres Manuel Lopez Obrador, which models of state-owned companies, such as EN EL of Italy and EDF of France are successful because they have a public tool for basic supply and a regulated market with variable costs because it is cheaper, so without a constitutional change and without the imposition of a monopoly like the one sought become, it can be the Federal Electricity Commission (CFE) which follows this example and leaves the supply, transmission and distribution of energy to the State.

In this regard, Humberto Morales Moreno, Professor at the Institute of Political Science and Strategic Development of the BUAP, is already preparing the renegotiations of electricity generation contracts and permits, under a different paradigm with calculations of total costs and not the marginal costs that does not include the payment of the infrastructure acquired or the transmission and distribution, which will be returned to the Federal Electricity Commission (CFE) energy management in Mexico.

“Today, the generation of electricity in the country is already dominated by a monopoly, the bottom BlackRock and the 10 companies that finance it and have behind and control the market, the monopoly is not the CFE, “he said,” Iberdrola, for example, has not put a single watt out of operation despite their complaints, in addition to the fact that, in fact, Iberdrola already has more funding than BlackRock than from other sources, then it is virtually no longer a Spanish company ”.

Óscar Moreno Silva, of the National Association of Business Lawyers, reiterated that the changes to improve negative aspects for the CFE’s finances, such as the legacy contract regime, can be applied in secondary legislation without the need for a constitutional change, as the Die initiative to be voted on is a de facto expropriation because the permits are canceled, it is a violation of the rule of law, because it was granted under the law, and it is also an offense to say that the CFE is going to control 54% of the generation, because investors showed up and acquired rights in a legal framework of open competition.

“The CFE according to the reform electric “It will be an organization with this control, even of energy policies, that completely violates the rule of law, which of course raises a lot of concerns about IP, investment protection, international treaties, by making changes by decree without technical or legal justification,” he said ..

In turn, Jorge Tonatiuh Martínez Aviña, professor at the UNAM Faculty of Economics, explained that energy is not just another good, but rather a strategic sector due to its transversality with the rest of the economic activities and that a country with the inequalities it has. Mexico cannot leave it in the hands of the market, which will not respond to climatic or financial contingencies of fuel, and less to the social need for electrification.

In his presentation, he explained that after the 1992 changes, in which private companies were allowed to generate electricity through self-sufficiency and as independent energy producers, eight years were enough for the IP to dominate 14% of national electricity generation. Twenty years later, they dominate 62% and forecasts suggest that over eight years, the CFE will only have a 16% stake in this activity, which is what generates revenue in the electricity chain.

“This reform does have a vision of the future, because the CFE is not a body isolated from society and with its stewardship it is the only way to make the energy transition, which will be carried out by the state, “because the nature of the private sector has only benefited, even from the financing of the Mexican state, the development bank and the Aphoras,” he said.

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