Autonomy of the Regulator in the Mexico Energy Sector

A new Mexican government took office on Dec. 1, leading to significant speculation on energy policy shifts. Already, the House of Representatives coordinator for the National Regeneration Movement, or Morena, the new majority party, filed an initiative in congress suggesting a reform to the Organic Law of the Federal Public Administration (or the Law).

Morena seeks to centralize the National Hydrocarbons Commission (or CNH) and the Energy Regulatory Commission (or CRE), the main regulators of the energy industry, under the Ministry of Energy (or SENER). The energy regulatory agencies were created under the Mexican Constitution, and reform to the Law is thus not plausible. However, the initiative started a discussion on the importance of the autonomy of the energy regulatory agencies.