Private initiative defends the autonomy of energy regulators



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MEXICO – The Employers' Confederation of the Mexican Republic (Coparmex) called for maintaining the autonomy of the Energy Regulatory Commission (CRE) and the National Hydrocarbons Commission (CNH), following the A proposal from the Morena parliamentary group to the Chamber of Deputies to sectorise both bodies.

The initiative, according to Coparmex in a Monday statement, goes against a trend that has been applied in recent years by several Mexican institutions that have become legally autonomous bodies.

"These bodies enjoy technical independence and management that ensure their solvency, without resorting to political negotiations.This has ensured that the key functions in charge of the public sector, such as monetary policy in the case of Banco de México, national statistics in INEGI and the organization of elections by the INE, to name a few, are not influenced by the political situation, nor co-opted by interest groups, ensured the direction of affairs.

According to Parliamentary Gazette on 18 October, Moreno's proposal calls for reform of the organic law of the federal public administration and to order that "the energy regulatory bodies referred to in Article 28 (8), of the Constitution be sectored in the Secretariat of Energy ".

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This measure would deprive regulators of freedom by making them dependent on a government institution.

"The technical and management autonomy of the CNH is enshrined in the Constitution (Mexican) (…) The constitutional reform decree published on December 20, 2013 provides that" the Congress of the Union will make the necessary changes to the legal framework that the National Hydrocarbons Commission and the Energy Regulatory Commission become coordinated regulatory bodies in this area, with their own legal personality, their technical autonomy and their management autonomy ", declared the CNH in a communicated.

This decree, which is part of the energy reform promoted by President Enrique Peña Nieto, establishes the powers of the CNH in the administration of contracts for exploration and extraction, supervision of the plans of Extraction and regulation of exploration and extraction. d & # 39; hydrocarbons.

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The Mexican Association of Hydrocarbons Companies (Amexhi) also expressed Monday its support for the autonomy of regulators in the energy sector.

The organization said in a statement that the proposal presented by MP Mario Delgado had a negative impact on the autonomy of the coordinated regulatory bodies in the energy field.

"The autonomy enjoyed by regulators allows them to make technical decisions and act as independent arbitrators of the sector, which promotes better use of hydrocarbons and successful project development." in the country, "said Amexhi.

NOTICE: Advances to the Organic Law of the Federal Public Administration?

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