Stay up to date with notifications from The Independent

Notifications can be managed in browser preferences.

Mexican leader fails to pass limits on foreign energy firms

Mexican President Andrés Manuel López Obrador has failed to get enough votes to pass a constitutional reform limiting private and foreign firms in the electrical power industry

Via AP news wire
Monday 18 April 2022 09:04 BST
Mexico US Electricity
Mexico US Electricity (Copyright 2021 The Associated Press. All rights reserved)

Your support helps us to tell the story

From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.

At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.

The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.

Your support makes all the difference.

Mexican President Andrés Manuel López Obrador failed to find enough votes late Sunday to pass a constitutional reform limiting private and foreign firms in the electrical power industry.

The reforms would have undone much of the market opening in power generation carried out by his predecessor in 2013, but also raised concerns among U.S. officials and companies.

The lower house of Congress voted 275 to 223 in favor of the measure, but that was well short of the 333 votes needed for constitutional changes.

The vote marked one of the few legislative setbacks López Obrador has suffered since taking office in late 2018. But he has vowed to submit separately a bill that would nationalize the mining of lithium.

The reform sought to limit foreign-built renewable energy plants and guarantee at least 54% of electricity would be bought from government-owned generating plants, which are dirtier. Private and foreign companies, which have built wind and gas-fired generating plants, would have been allowed to keep up to 46% of the market.

The debate began with nearly all 500 deputies present. The ruling party and its allies need a two-thirds majority to pass the constitutional reform.

Some pro-government legislators chanted ’’Traitors″ at the opposition, which objects to the reform. Opposition lawmakers shouted: ’’It won’t happen.″

Given the atmosphere, López Obrador's Morena party failed to win over any significant number of opposition legislators.

Critics said the reform would hurt investors and their confidence in Mexico. The companies could have sought court injunctions, and the U.S. government could have complained under a free trade agreement and then put compensatory tariffs on Mexican products.

Pro-government legislators have already passed a law giving the state utility more discretion in deciding whose electricity to buy, but it remains stalled by court challenges.

Thank you for registering

Please refresh the page or navigate to another page on the site to be automatically logged inPlease refresh your browser to be logged in