US Ambassador Cites “Serious Concerns” Over Mexico’s Energy Bill | News Today

US Ambassador Cites “Serious Concerns” Over Mexico’s Energy Bill

| Top stories | abc News

US Ambassador to Mexico said his country was “gravely concerned” over attempts by the Mexican government to limit competition in the electricity sector

Ambassador Ken Salazar said he met with Mexican officials to discuss a proposed constitutional amendment aimed at restricting the market share of private power producers and favoring the Mexican utility company.

Previously, a group of US lawmakers in Texas had expressed their own concerns over President Andrés Manuel López Obrador’s proposal, which faces an uphill battle in the Mexican Congress.

In a letter to Salazar in October, around 20 members of Congress and senators from Texas said López Obrador’s proposal “would discriminate against US energy producers.”

The bill that López Obrador introduced in October would cancel contracts under which 34 private power plants sell electricity to the national grid. The plan would also declare “illegal” 239 additional private power plants that sell energy directly to corporate customers in Mexico. Almost all of these plants run on renewable energy sources or natural gas.

The measure would also cancel many long-term energy supply contracts and preferential clean energy purchase programs, often affecting foreign companies.

It places private natural gas-fired power plants almost last – ahead of only government coal-fired power plants – for rights to sell electricity to the grid, despite the fact that they produce electricity about 24% cheaper. Government-run factories that burn dirty fuel oil would be given preference over private wind and solar power plants.

The plan guarantees the electric utility a market share of “at least” 54%, even though the US-Mexico-Canada free trade pact prohibits favoring local or government companies.

The letter from US lawmakers in Texas said that “the constitutional reforms proposed by the (Mexican) government would increase state control over the electricity industry and severely limit private investment. These measures, among others, undermine our critical trade partnership with Mexico and potentially violate key USMCA principles. “

The Mexican government says it is seeking to cooperate with the United States on renewable energy. Yet many of the wind and solar power plants that López Obrador wants to limit were built by American or Spanish companies.

López Obrador, from the oil-producing Gulf Coast state of Tabasco, has made his main effort in promoting fossil fuels. Its administration is focused on building or acquiring new oil refinery capacity.

Experts say López Obrador’s policies could also endanger Mexico’s fulfillment of existing carbon reduction commitments. The president argues that increasing hydropower capacity will allow Mexico to meet these goals.

Breaking News Updates Google News US Ambassador Cites “Serious Concerns” Over Mexico’s Energy Bill

Not all news on the site expresses the point of view of the site, but we transmit this news automatically and translate it through programmatic technology on the site and not from a human editor.
Back to top button