Mexico's state-owned CFE will dominate the market with electricity reform- Fitch

The Mexican spot market would likely be abolished with the electricity reform proposed by President Andres Manuel Lopez Obrador's government, said a Fitch analyst.

Private parties would only be allowed to generate energy for the state-owned Comision Federal de Electricidad (CFE), said Jesus Enriquez, Fitch's director of Infrastructure & Project Finance in Latin America during a webinar about the Mexican energy Reform. If the reform is passed, "CFE will be the only entity in the country able to buy and sell its electricity to final users, so there would be no need to have a market anymore," said Enriquez.

The Federal Economic Competition Commission (COFECE) has previously recommended that lawmakers do not approve the bill championed by the president, who argues it is needed to keep energy prices low.

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