This comprehensive proposal aims to transform the electric industry into a competitive electricity market. Basically, the market scheme we promote will separate the existing monopoly into several generation companies that will sell into the pool, one national transmission company, as a matter of fact CFE, and several private distribution companies operating as concessionaires. The government would retain final responsibility for market dispatch, and will insure fair and transparent rules for all players. Thereby, demand and supply will determine the price of generated electricity, while in transmission and distribution tariffs will be regulated. Divestment of public assets is a consequence and a necessary condition for competition.
Electricity is a non-tradeable good, so it has to be supplied domestically.
Thus the importance of the structural reform to foster efficiency gains in the Mexican economy. Nature has privileged Mexico with primary energy sources. However, the subsequent transformation of natural resources into usable energy must be done in a way that will add value and create jobs within our economy. This will make Mexico a stronger partner, with a higher purchasing power. We are confident that a competitive electricity market will bring many benefits to Mexico.