Mexico president threatens constitutional change if power bill struck down

MEXICO CITY: Mexican President Andres Manuel Lopez Obrador said on Wednesday he would send an initiative to Congress to reform the constitution if a new law to increase state influence over the electricity market is deemed unconstitutional.

Last week, a judge temporarily suspended the government's electricity bill, which was passed by lawmakers earlier this month and aims to strengthen state power utility the Comision Federal de Electricidad at the expense of private operators.

Speaking at a regular news conference, the leftist president said he would pursue a change in the constitution if the legislation is ultimately struck down by Mexico's judiciary.

Lopez Obrador argues that the previous administration skewed the electricity market in favor of private operators with its own constitutional overhaul. Earlier this month, he said he is seeking to renegotiate the terms of existing contracts.

Some companies were eager to reach a deal with the government, Lopez Obrador said, without naming any. However, there would need to be "discounts," he said.

Trade experts say that a repeal of the last government's energy reform could breach Mexico's commitments to investors under a regional trade deal it initially sealed in 2018, the United States-Mexico-Canada Agreement (USMCA).