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    Published on Thursday, October 7, 2021

    Mexico | Energy reform: unnecessary pushback

    Summary

    The president has turned over to Congress a constitutional reform initiative that seeks to reverse the 2013 energy reform that ended decades of monopoly control of the sector by the State

    Key points

    • Key points:
    • As a result of the aforementioned 2013 reform, today electricity is supplied to the grid with a priority criterion that privileges the dispatch of electricity in the first place to those who sell it at a lower price and in the end the most expensive
    • This has two important benefits: first, that the cheapest possible electricity is available at all times
    • The second, that the cheapest electricity is the least polluting, which benefits the environment
    • However, if the counter-reform is approved, there will be a serious setback and great and irreversible damage to the country

    Geographies

    Authors

    Carlos Serrano BBVA Research - Chief Economist

    Documents and files

    Press article (PDF)

    ArtPrensa_CarlosSerrano_07octubre21.pdf

    Spanish - October 7, 2021

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