Mexican Senate Approves Constitutional Preference for State Power Company

The reform grants the state-owned CFE priority over private companies in electricity generation, pending state legislature approval.

The Mexican Senate passed a constitutional amendment favoring the state electricity company CFE over private competitors with an 86-39 vote.
The reform requires national grid operator Cenace to prioritize power from CFE plants, even if more costly than private alternatives.
Approval from at least 17 of 32 state legislatures is needed for the reform to be enacted and published in the official gazette.
President Claudia Sheinbaum's Morena party led the initiative, continuing former President Lopez Obrador's efforts to enhance state control in the energy sector.
Critics argue the reform could discourage investment and undermine competition, while supporters claim it restores strategic control to the state.