Mexican Senate Restores Public Status and Control to Pemex and CFE

The Mexican Senate has approved significant constitutional changes affecting Petróleos Mexicanos (Pemex) and Comisión Federal de Electricidad (CFE).

These amendments redefine Pemex and CFE as “public” state enterprises, marking a shift in their status. The Senate plenary session approved the decree with 86 votes in favor and 39 against.

Morena, PVEM, and PT parties supported the changes, while PAN, PRI, and MC opposed them. The debate lasted over six hours before the final vote took place.

The amendments specify that secondary legislation will determine how private entities can participate in other electrical industry activities. However, these activities will not take precedence over the state’s public enterprise.

The state enterprise’s primary responsibility is to fulfill its social duty and ensure continuous, accessible electricity service. The changes also address monopoly concerns.

They clarify that exclusive state functions in strategic areas like lithium and internet service do not constitute monopolies. Additionally, the planning and control of the national electrical system will not be considered a monopoly.

Mexico’s Energy and Railway Reforms

The reforms aim to preserve national energy security and self-sufficiency. They also seek to provide electricity to the public at the lowest possible price, avoiding profit-making.

This approach intends to guarantee national security and sovereignty through the established state public enterprise. In a separate but related development, the Senate unanimously approved changes to Article 28 of the Constitution.

This reform concerns railway transportation routes. It declares both passenger and freight railways as priority areas for national development.

The railway reform allows the Mexican State to reclaim the right to use railway lines for passenger transport services. The federal executive can now grant assignments to public companies or concessions to private entities for this purpose.

These constitutional changes reflect a shift towards greater state control in key sectors of the Mexican economy. The reforms aim to balance public interests with private sector participation in critical industries.

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