Proposed merger of Mexican regulators paused

Mexico's senate majority leader postponed a proposal to merge the energy regulatory commission (CRE) with a government consumer watchdog agency and telecommunications authority, but a separate energy ministry plan could change the landscape in other ways.

Lawmaker Ricardo Monreal paused his proposal after receiving calls to better analyze the bill, which would require modifying the constitution. Monreal is aligned with the Morena party of President Andres Manuel Lopez Obrador, who offered support for the bill because of its cost-savings potential. The changes would save 500mn pesos/yr ($25mn/yr) and streamline operations, Monreal said.

Yet the 2020-2024 development plan from energy ministry (Sener) — while not suggesting that regulatory agencies should be merged — would aim to align CRE and the national hydrocarbons commission (CNH) with the aim of "rescuing" state-owned oil company Pemex and power company CFE.

The plan also recommended that Pemex move into Mexico's retail LPG market with its own brand instead of only selling wholesale to private-sector distributors, and that CFE should boost fuel oil use in power generation.

Strengthening state-owned companies to boost development and provide energy security can also have a multiplier effect on the private sector, Sener said in its report, which should include providing for domestic energy needs.

By Sergio Meana