Mexico President Andrés Manuel López Obrador has high hopes of changing the rules of the game in the electric power sector, but his proposal likely won’t be voted on in Congress until early next year as the reform is studied by legislators.


The reform, if passed, would modify the constitution to eliminate upstream oil and gas regulator Comisión Nacional de Hidrocarburos (CNH). It also would eliminate midstream, downstream and electricity regulator Comisión Reguladora de Energía (CRE). Independent power grid operator Centro Nacional del Control de Energía (CENACE) would be absorbed by state-owned power company Comisión Federal de Electricidad (CFE), while CFE would win a mandate to supply 54% of electricity generated in the country.

The electric sector reform “will...