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Mexico - February 2021

Electricity reform plans deepen investors’ concerns

Although attracting domestic and foreign private investment is instrumental for sparking an economic recovery, the government led by Mexico’s President Andrés Manuel López Obrador continues to pursue policies that undermine the local business environment and investor confidence. Ahead of the start of a new period of ordinary legislative sessions, President López Obrador sent an electricity sector reform bill for urgent discussion by congress. The reform is the latest attempt to change the rules of the domestic electricity market to reverse key elements of the 2013-2014 energy reform to ensure that the Comisión Federal de Electricidad (CFE), state-owned electricity firm, remains as the dominant market player and limit private participation.

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