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Mexico president calls for steps to keep power prices low
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Mexico wants firms to revise contracts so electric rates don't rise
Mexican President Andres Manuel Lopez Obrador said on Monday he wants to revise the contracts that private energy companies have with state-run power utility CFE so they do not hike electricity prices. 'We are urging companies that have agreements with the Federal Electricity Commission (CFE) to come together to review contracts and above all to reach an agreement that electricity prices will not increase,' Lopez Obrador said during his morning press conference. 'We are looking to achieve a voluntary restructuring of agreements and commitments within the framework of the law ... The Mexican government is committed to not increasing electricity prices for consumers, but we want private companies to help in this initiative,' said Lopez Obrador.
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Mexican president calls for steps to keep power prices low
'We are urging companies that have agreements with the Federal Electricity Commission (CFE) to come together to review contracts and above all to reach an agreement that electricity prices will not increase,' Lopez Obrador said during his morning press conference. The president, a leftist who took office in December, pledged during the campaign to strengthen the CFE and avoid energy price hikes during his term. Lopez Obrador noted that the state-owned utility is already contractually obliged to pay billions of dollars to the private companies that developed seven natural gas pipelines to supply power plants, even though the projects are incomplete and unable to deliver gas.
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Mexico president calls for steps to keep power prices low
Lopez Obrador noted that the state-run utility is already contractually obliged to pay billions of dollars to the private firms that developed seven gas pipelines to supply power stations, even though the projects are incomplete and unable to deliver gas. 'If the pipelines can't be built, as is happening in seven large gas pipelines, the companies still have to be paid even if there is no gas,' said Lopez Obrador. IEnova's shares dropped 6.7 percent, TransCanada's were down 0.5 percent and Carso slipped 0.21 percent after the comments.
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