Yucatan businessmen fear an increase in rates due to AMLO’s electricity reform

Business Chamber leaders warn, in letters sent to senators, that the LIE will bring negative economic, legal, social, and environmental effects

Prior to the analysis in the Upper House, various local business organizations sent letters to the Yucatecan senators to urge them to vote against the electricity reform approved recently by a majority.

The Yucatecan Federal legislators to whom they sent the letters are: Verónica Noemí Camino Farjat (Morena), who ignored the request and endorsed the reform; Jorge Carlos Ramírez Marín (PRI) and Raúl Paz Alonzo (PAN), gave their vote against.

Canacintra, Coparmex, and Canacome indicated that the reform of the Electricity Industry Law (LIE) would eliminate the efficiency logic with which the cheapest energy is currently dispatched in the market, and whose consequence is expected to be an increase in at least 17 percent of the rate for all consumers.

The president of the Employers’ Confederation of the Mexican Republic (Coparmex) in Mérida, Fernando Ponce Díaz, said that with the ratification of the reform in the Senate, Mexico will be at a competitive disadvantage.

What the country needs, he added, is to apply best international practices, establish a scheme that provides legal certainty and a framework of respect that favors public-private cooperation.

The local president of the National Chamber of the Transformation Industry (Canacintra), Jorge Charruf Cáceres, considered that the cost of turning the CFE into a monopoly implies serious economic, legal, social, health, and environmental consequences since it contravenes the Constitution, the USMCA and the Paris Agreement ratified by Mexico and more than 180 countries against climate change.

For his part, the president of the National Chamber of Commerce of Mérida (Canacome), Iván Rodríguez Gasque, indicated that if the LIE is approved, the efficiency logic with which the cheapest energy is dispatched in the market will be eliminated, and the consequence it would be an increase in the rate.