Published On: Mon, Jul 21st, 2014

Mexico’s Senate approves further energy Reform Legislation

Share This
Tags

Mexico City.- On Monday July 21st, 2014, Mexico’s senate has officially approved further legislation governing the energy reform passed into law in December.

Senators voted 89 to 27 in favor of the new legal framework aimed to restructure state-owned power utility CFE and oil firm Pemex and convert them into productive and competitive state-owned entities with managerial autonomy and regulated by independent bodies.

This legislation is the third of four packages that comprise the secondary legislation governing the energy reform package approved in December, which allows both firms to form partnerships with private firms and opens up the sector to investment.

During 12 hours of debate on Sunday July 20th, 2014, senators expressed their approval and rejection of the law that creates a new legal framework for the two firms’ acquisitions, leasings, public works and service policies to make them more competitive in their respective markets, according to a senate press release.

The approved laws also regulate the management, functioning, operation, control, and evaluation of the two firms and their affiliates, as well as their salary structures, hiring policy and their evaluation of employee performance.

Both firms will also be responsible for safeguarding employees’ rights and establishing training programs for their staff, in conjunction with trade unions, to guarantee the firms’ efficiency, productivity and competitiveness.

Mexico's Senate Debate

Mexico’s Senate Debate

Senator Zoé Robledo Aburto of the left wing PRD party said that both firms should set operational and financial goals in order to measure performance, otherwise the task of evaluating the firms and ensuring transparency would be more difficult.

Senator Marín Orozco Sandoval of the PAN party said that the new legal framework for the state-owned firms will create more transparency and eliminate corruption due to the independence of the regulatory bodies created by the energy reform.

Ruling PRI party senator Ernesto Gándara Camou said the reforms ensure Pemex and the CFE will be governed by their own laws and will attract investment, stimulate economic growth and make both firms more efficient.

Source: http://www.bnamericas.com/

Mexico Travel Care

footer-john-2


Comments

comments

Leave a comment

XHTML: You can use these html tags: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>