Mexico reveals power privatisation bill in the senate

• 10 years ago (2013-12-10)
• Junior Isles

North America 998

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Mexico has revealed an energy bill in its senate which would end the state’s monopoly over the power generation sector, opening up power generation to private firms.

The bill is currently only at the senate committee stage, but confirms proposals outlined by the energy ministry Sener's head of electricity, Lourdes Melgar, back in August.

The bill lays out plans for restructuring of the Mexican national energy control centre (Cenace), currently a department of state-owned utility CFE, making it an independent state-owned body with the remit to administer an open generation market, just like many independent system operators (ISOs) around the world.

Mexico's existing transmission network would remain under the ownership of CFE in the new bill, but interconnection and expansion of the network would be the responsibility of an independent Cenace. Distribution would also remain under state control.

"In a few years, one will be able to select the company that provides [electricity] service based on the best price, supply and customer service for each family or industry," the bill reads.

The bill is primarily aimed at reforming the CFE into an efficient "productive public company”.

The bill is expected to be brought to the senate floor in the coming week, possibly with minor alterations by committees.