👀 Ones to watch: Undervalued stocks to buy before they report Q3 earningsSee Undervalued Stocks

Mexican Senate votes to give constitutional preference to state power company

Published 10/17/2024, 02:39 AM
Updated 10/17/2024, 02:46 AM
© Reuters. FILE PHOTO: The logo of Mexico's state-run electric utility known as the Federal Electricity Commission (CFE), is seen at its office, in Mexico City, Mexico May 8, 2024. REUTERS/Henry Romero/File Photo

MEXICO CITY (Reuters) - Mexico's Senate voted to amend the country's constitution late on Wednesday to give dispatch preferences to state electricity company CFE, cementing the national power generator's preferential status above foreign or private competitors.

The initiative passed the upper chamber of Congress with 86 votes to 39, meeting the requirement of two-thirds support to change the constitution.

The constitutional reform will require national grid operator Cenace to prioritize power generated from the CFE's power plants, even if it is more costly than power supplied by private producers.

The proposal already passed the lower house of Congress last week, with support from the leftist ruling Morena party of President Claudia Sheinbaum.

The constitutional overhaul of dispatch rules will take effect once it passes a majority of state legislatures, and is then published in the government's official gazette.

© Reuters. FILE PHOTO: The logo of Mexico's state-run electric utility known as the Federal Electricity Commission (CFE), is seen at its office, in Mexico City, Mexico May 8, 2024. REUTERS/Henry Romero/File Photo

Like her predecessor, former President Andres Manuel Lopez Obrador, Sheinbaum has sought to give more control of Mexico's energy market to state-owned power company Comision Federal de Electricidad (CFE).

Lopez Obrador sought to enact the same change during his term, but was thwarted by legal challenges.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.