Mexico Prioritizes State Electricity: A Shift in Power Dynamics

Mexico's Senate amended the constitution, granting priority to state electricity firm CFE over private competitors in power dispatch. The reform, supported by President Sheinbaum's Morena party, awaits approval from state legislatures to become law, continuing efforts by Lopez Obrador to enhance CFE's market control.

Late Wednesday, Mexico's Senate voted to amend the constitution, granting priority dispatch status to the state electricity company CFE over its private and foreign counterparts.

The reform, which passed with 86 votes, aims to increase CFE's control over Mexico's energy market, a move backed by President Claudia Sheinbaum's ruling Morena party.

For the changes to take effect, they must still pass a majority of state legislatures and be published in the government's official gazette, continuing the efforts initiated by former President Andres Manuel Lopez Obrador.

(With inputs from agencies.)