Mexico City, October 11.- One objective of the proposed constitutional reform on electricity is to eliminate privileges of 77,000 large private consumers and bring energy to 43 million families at affordable prices , said Héctor Sánchez López, independent member of the board of directors of the Federal Electricity Commission ( CFE ).
In an interview with La Jornada , he stated that the oversupply of permits granted to private energy generators constitutes a risk of collapse of the national electrical system due to the large number of plants in the country, and this would lead to the creation of a private electricity monopoly .
On October 1, President Andrés Manuel López Obrador sent an electricity reform initiative to the Chamber of Deputies , which involves granting a 54 percent market share of electricity generation to the CFE, eliminating current electricity generation contracts and electricity purchase and sale contracts with the private sector, and proposing to eliminate regulatory bodies .
They buy cheap and resell expensive to the CFE
He explained that the state-owned enterprise focuses on generating profits, "and that is not its mission or the government's vision. What is required is for it to focus on generating electricity and selling it to families at its true value."
Thus, he explained, by eliminating permits and concessions to private individuals, the CFE will focus on generating the electricity needed to sell to families at the real price . The CFE and families would stop subsidizing large consumers, thus lowering prices for individuals . "The lower prices are for large consumers, not the poor," he said.
Excess permits generate oversupply
Sánchez López argued that one of the reform proposal 's goals is to eliminate autonomous regulatory bodies , since they were dedicated to granting generation permits to private individuals without control.
