Business

Comener: Mexico Faces Challenge of Creating New Energy Sector

14 of March 2016

REFORMA ENERGÉTICA NECESITA REGLAMENTACIÓN MODERNA

At the meeting it was decided that the new energy industry should be integrated with private sector players of all levels

Before the assembly that met this past week, the National Energy Council (Comener) had concluded that Mexico faces the challenge of creating a new energy sector, one that results in the development of an industry that has until now been commanded by two state monopolies, Petróleos Mexicanos (Pemex) and the Federal Electricity Commission (CFE).

At the meeting it was decided that the new energy industry should be integrated with private sector players of all levels, as has already been achieved with the new Energy Reform. It was discussed that this new industry will arise from both private and public sectors, with fair rules that promote participation, within a framework of supply and demand.

The second conclusion of Comener was the need to establish and guarantee what they call ‘an even floor’ for Mexico’s energy industry. This refers to the applicable laws and regulations that are coupled with private and public sectors, and will be monitored by third-party institutions, which will expeditiously and impartially seek justice.

Juan Acra, president and spokesman of Comener, explained that in addition to the members of the national council, there are others who are concerned about the industrial transition from a monopolistic structure to that of creating an opportunity for a dynamic and competitive industry. Another issue of concern is the sales and supplies of commodities Pemex and CFE that are currently only operating in Mexico.

All of this, so that the private initiative will be subject to pricing by the conditions of competition if not by bureaucratic and political case decisions. These monopolistic practices are not permitted by law. It stressed at the end of the assembly the importance of including Mexico’s international commitments in the energy sector, which included representatives from Maritime and Land Transport, the Renewable Electricity Sector, the Industry Sector, and the Petroleros among others.