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LatinNews Daily - 29 April 2021

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In brief: More criticisms over Mexico’s electricity reform

* Régulo Salinas, the president of the energy commission in Mexico’s Confederación de Cámaras Industriales (Concamin), a private sector lobby, has expressed concern that recent reforms to the country’s electricity sector could lead to the “collapse” of financial institutions which have financed big energy projects. The controversial new electricity law (LIE), pushed for by President Andrés Manuel López Obrador, was approved by congress last month but is now the object of judicial disputes. Critics say the reform violates constitutional provisions on free competition, amongst other issues, by giving preference to the sale of energy produced by the state-owned electricity firm (CFE). Now, Salinas has raised concerns over the situation of Mexican financial institutions which have funded big private energy projects, where repayment of the financing is linked to the distribution and sale of electricity generated by those projects, whose production could end up being sidelined in favour of the CFE.