Energy

Mexico Plan to Centralize Power Contracts Sparks Company Outcry

Signage outside a Comision Federal de Electricidad (CFE) self-service automated payment kiosk center in Mexico City, Mexico, on Wednesday, April 13, 2022. President Andres Manuel Lopez Obrador failed in his effort to restore state control of Mexico's electricity sector, handing the nationalist leader an unusual political defeat in his fight against private energy producers.Photographer: Jeoffrey Guillemard/Bloomberg

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By Scott Squires and Michael O'Boyle

December 15, 2025 at 9:20 PM UTC

Companies in Mexico’s power sector are sounding the alarm after the government published a draft proposal that would force them to sell electricity to state-run Comision Federal de Electricidad and potentially open the door for a government takeover of some power plants.

The draft, published Dec. 5 as part of a public comment process prior to being formalized in the official gazette, would modify an existing regulation for independent power producers.