MEXICO CITY - Mexico’s president on Thursday said he was ready to negotiate over changes to the electricity market that angered firms and foreign allies, opening the door to a potential compromise that could ease tensions over energy policy.
Measures taken by the government in recent weeks to reduce the influence of private energy producers provoked protests from the European Union, Canada and Mexico’s most powerful business associations. On Friday, the EU and Canada raised concerns about an April 29 order suspending operation of new renewable plants on the grounds the government needed to safeguard power supply during the coronavirus outbreak.
The electricity dispute follows a spat last year over several natural gas pipeline contracts the government said were costing Mexico too much.
Privatized electric production reduces the price of electricity it if the government regulated the conpanies to provide extra resources without compensation they have to jack up the price to cover costs and it’s the consumers who pay the price