EXPLAINER: Why is US upset about Mexico's electricity law?
ABC News
Mexico's Congress is poised to vote on a constitutional reform that would undo much of a 2013 market opening in electrical power and guarantee a majority market share for the state-owned power utility company
MEXICO CITY -- Mexico’s Congress is set to vote on a constitutional reform promoted by President Andrés Manuel López Obrador that would undo much of the market opening in electrical power carried out by his predecessor. It is unclear if López Obrador has the votes to push the reform through. But the U.S. and other countries have raised concerns the move will affect foreign investors and violate trade agreements.
WHY DID MEXICO INVITE FOREIGN COMPANIES IN?
Prior the 2013 energy reform, Mexico faced several problems: high electricity rates, scarce generating capacity and dirty power plants that often burned fuel oil to produce electricity. So the government built pipelines to import cleaner U.S. natural gas, allowed companies to buy electricity from independent generators and gave foreign and private firms incentives to install cleaner wind-power turbines or gas-fired plants.
WHY DOES MEXICO'S PRESIDENT WANT TO UNDO REFORM?
