Electricity reform is contrary to the spirit of TMEC: AmCham

AmCham calls on Congress to focus energy legislation on the economy and health of consumers, the rule of law, sustainability and certainty in the business environment.

The American Chamber of Commerce of Mexico (AmCham) and the more than a thousand companies it represents expressed their concern about the effects that the proposed constitutional reform on energy would have.

The association assures that if approved, it would affect Mexican families and industry due to its environmental and economic repercussions and compliance with international commitments, particularly the Treaty between Mexico, the United States and Canada (TMEC).

AmCham points out that at times of national and regional economic reactivation after the COVID-19 pandemic, in which Mexico and the United States make joint efforts to relocate and develop regional supply chains, this constitutional reform proposal will negatively affect the climate of confidence and certainty necessary for recovery, since the reform proposal does not propose to respect, until its expiration, the regulatory and contractual schemes under which long-term investments were made.

In addition, it contravenes the commitments established by Mexico in the TMEC by eliminating the coordinated regulatory bodies in energy matters, disappearing the wholesale electricity market, imposing market quotas and the cancellation of private contracts, among others;

It will reduce the diversity of electricity supply options, which generates concern in private sector companies, risks of shortages and could increase the final cost of energy in Mexican homes;

It could increase the energy costs of the productive chains on Mexican soil and negatively affect investor confidence, Mexico would lose the opportunity to be a thriving and competitive economy, and it would also compromise the prosperity of the North American region.

Finally, it moves the Energy Transition towards a single generator with limited clean generation capacities, preventing Mexico from achieving its international commitments in the Paris Agreement, the Agreement on Environmental Cooperation between Mexico, the United States and Canada, within the framework of the T-MEC and the agreement of the Objectives of the 2030 Agenda for Sustainable Development.

“We make an attentive call to the legislators who will participate in the discussion process of the constitutional reform proposal of the Federal Executive, so that they put the Mexican economy first; the competitiveness of the industry, which generates 9 out of 10 jobs; respect for the human right to a healthy environment and health, as well as the rule of law as a whole ”.

“At AmCham we are convinced that the best way to strengthen the country’s energy security and competitiveness is through the complementary participation of different companies from the public and private sectors that, in an environment of free competition and stable rules, compete to offer clean, reliable, resilient energy at affordable prices for Mexican homes and businesses. “

Finally, AmCham made the technical knowledge of its National Network of Committees available to the reviewing legislators of this constitutional reform, as well as to the Federal Government as a whole.

“Constructive dialogue with private initiative is key to identifying the best energy alternatives for the well-being of Mexicans and the competitiveness of companies, always prioritizing the prevalence of the rule of law.”

Join us at the Mexico 2021 International Energy Meeting, where businessmen, experts, regulators will analyze the Federal Government’s energy policy within the framework of the TMEC. Register with preferential price here: http://encuentroenergia.mx/

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