• COSTS: President Andrés Manuel López Obrador’s bill seeking to protect state-owned electric utility (CFE) could imperil 71 private renewable projects worth US $9.8 billion and violate at least three international trade agreements, Mexico’s legislative budget office (CEFP) found.
• TREATIES: As the Mexican Congress begins its debate, the CEFP stated in a report that the bill jeopardizes renewable projects totaling 9,525 MW of capacity and could violate the new USMCA deal, the CPTPP trans-Pacific agreement and the European Union-Mexico trade pact.
• DISPUTES: “These projects involve at least 28 companies from various countries that, if the bill passes, would be in a position to file constitutional disputes or demand compensation”, says the CEFP’s report. It also warned that other projects waiting for approval could be also affected.
• PROCESS: Presented by López Obrador in late January, the electricity bill passed Wednesday the Lower House’s budget committee and will now be considered by the energy committee. It is expected that the bill will reach the House’s floor before heading to the Mexican Senate.
