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Mexico’s energy policies face a reality check

President Andrés Manuel López Obrador has backtracked in his dispute with private pipeline developers, saying their contracts will be respected President Andrés Manuel López Obrador has backtracked in his dispute with private pipeline developers, saying their contracts will be respected.
By Elena Mataro 22 February 2019 Americas / Companies & Finance 0 33968
Mexican President Andrés Manuel López Obrador giving a speech in January. (PA)

Mexico’s new government has limited leeway to alter the energy policies of the previous administration despite its anti-private sector rhetoric. The restrictions it is facing seem to have been confirmed by President Andrés Manuel López Obrador’s recent U-turn on forcing companies to renegotiate contracts with state utility the CFE.

The new government is opposed to the previous administration’s approach to power sector policy, which it claims has harmed the CFE. López Obrador noted last week that the utility currently provides just 50% of Mexico’s electricity, down...