Energy reform: redesigning the Mexican model

Abstract

PurposeThe purpose of this paper is to express the need for a continuous comprehensive institutional, organizational, and regulatory change both at the sector level and in each energy industry in Mexico.Design/methodology/approachThe paper describes the Mexican model of energy reform, highlighting the deficiencies of the present model and suggesting that there is a need for a continuous and comprehensive change to face the energy sector challenges.FindingsAn imprecise and outdated legal and regulatory framework coupled with historical and political factors allowed limited changes in the country's energy sector. The paper suggests that an evolution is necessary but must occur within the Mexican constitutional framework, although the constitution does not clearly establish the limits of public and private sector activity in order for it to effectively regulate them. The huge task of institutional and regulatory reform in Mexico should occur gradually and in clearly defined stages, making a precise distinction between the more efficient administration of public sector companies and the entry of new participants.Originality/valueThe paper outlines the need for energy reform in Mexico.