With the government's planned revamp of the Mexican electricity market foreseeably on the agenda, United States Energy Secretary Jennifer Granholm will travel to Mexico this week to meet with senior government officials, President Andres Manuel Lopez Obrador said on Monday.

"She'll meet with the Mexican energy minister and the foreign minister, and we'll also welcome her here at the palace," the president said at a usual morning press briefing.

AMLO Eyes Strengthening of State Controlled Power Sectors

The U.S. has voiced concern over a Lopez Obrador-led effort aimed at strengthening state control of the power sector at the expense of private companies.

During the visit, which will include meetings with Granholm and the Mexican foreign and energy ministers, Lopez Obrador stated that no topic will be off the table. He specifically mentioned prospective discussions on his proposed power industry changes.

Private investors have expressed concerns about the idea, and the U.S. ambassador has stated that Washington has "serious concerns" about it.

Previous Mexican governments, according to Lopez Obrador, rigged the energy industry in favor of private capital at the expense of customers and state-run energy businesses.

"I will be pleased to inform her on the reforms if necessary, or if she wishes to know my opinion," the leftist nationalist leader stated.

The Mexican president also expressed gratitude to Granholm for the U.S.' approval of Mexican state oil company (Petroleos Mexicanos) Pemex's acquisition of Royal Dutch Shell's Deer Park refinery in Texas.

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Mexico's 'Open Discussion' on Electric Power Reform

On Monday, the debate over Mexico's contentious constitutional reform of the electric energy sector has restarted, with a panel of governors and state leaders launching an open discussion on electric power reform.

The governors' meeting marked the start of President AMLO's second attempt to approve the bill after he failed to gain the necessary approval from the opposition during the previous parliament session.

Because the proposal includes constitutional changes, Morena, the majority party, will need the backing of two-thirds of members present in both chambers of Congress to enact the reform.

The ruling coalition would need the support of 333 legislators if the lower chamber was full. AMLO's Morena party, together with minor party allies, currently has only 279 seats.

"Despite the numbers, there is no doubt that reform can occur," said Valeria Vázquez, partner and Deloitte's energy and resources business leader. Vásquez, on the other hand, believes the reform will be "extremely difficult to negotiate" in its current shape.

Among other things, the present proposal cancels all current private power generation and sales contracts, which would presumably be renegotiable at a later date.

While the forums ensure that debate will take place this session, Legislators from the three biggest opposition parties - the PAN, PRI, and PRD - have warned that any vote will be postponed until after the June 5 governorship elections.

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This article is owned by Latin Post.

Written by: Jess Smith

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