- Constitutional changes are not necessary to encourage clean energy.
- To establish a monopoly, yes.
CDMX, March 24, 2022. Mariano Calderón, Expert partner in constitutional matters at the law firm Santamarina and Steta He pointed out that the possible "adjustments" that are being announced in the electricity reform initiative are “a green make-up that aims to filter out a whole state monopoly monster”.
The specialist explained that it is good to incorporate fiscal incentives in ISR and VAT for the purchase of electric vehicles, but this does not compensate in any way for the damage and disaster that the intention of returning to a monopoly and monopsony means.. “To establish a stimulus, it is not necessary to reform the Constitution. It is not a constitutional issue. There are already incentives. The damage of the constitutional reform initiative is in no way comparable to the minimal benefit that incentives for the purchase of electric vehicles can represent.” said.
Mariano Calderón pointed out that the same applies to incentives for the development of electric motor technology and the revision of tariffs, which are also not a matter for constitutional reforms. “A legal reform is enough and does not mitigate the underlying damage that a constitutional reform would bring, which is required to establish a state monopoly. This damages the entire electrical system and also undermines the certainty of the rule of law in Mexico. Consequently, investment projects in the energy sector and several other industries are also affected,” stressed.
The expert also clarified that incorporating a human right to electricity is nothing more than a wishful thinking and a dead letter. If there is no budget to make it effective, it is useless. It has no effect. “In fact, the reform initiative as it stands even contradicts this right, because by making the electricity system less competitive, it makes it less viable to supply electricity in the future and goes against consumers being able to choose who to buy from. Establishing a monopoly/monopsony is contrary to promoting the human right to electricity,” concluded.
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