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Published on Thursday, October 7, 2021

Mexico | Energy reform: unnecessary pushback

Summary

The president has turned over to Congress a constitutional reform initiative that seeks to reverse the 2013 energy reform that ended decades of monopoly control of the sector by the State

Key points

  • Key points:
  • As a result of the aforementioned 2013 reform, today electricity is supplied to the grid with a priority criterion that privileges the dispatch of electricity in the first place to those who sell it at a lower price and in the end the most expensive
  • This has two important benefits: first, that the cheapest possible electricity is available at all times
  • The second, that the cheapest electricity is the least polluting, which benefits the environment
  • However, if the counter-reform is approved, there will be a serious setback and great and irreversible damage to the country

Geographies

Documents and files

Press article (PDF)

ArtPrensa_CarlosSerrano_07octubre21.pdf

Spanish - October 7, 2021

Authors

CS
Carlos Serrano BBVA Research - Chief Economist
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