Multiple impacts of global electricity companies. The case of Iberdrola in Mexico

Abstract

Abundant research exists on negative social impacts of projects located by global companies in developing regions. The most commonly identified negative impacts are: loss of sovereignty; commercialization of privatized public services; the practice of lobbying; the lack of transparency; corruption; social criminalization; job insecurity; and violation of rights of indigenous peoples. The aim of this study is to evaluate the possible negative social impacts of projects of the Spanish power company Iberdrola in Mexico. Therefore, it focuses on knowing the positions of the critical sectors of the company operating in Mexico, and analyzing the company’s arguments and positions. The applied methodology is assessment. It relies on the collection of documents from various sources (public and business institutions, researchers, social movements), and interviews with different agents (affected individuals, academics, technicians). The results contrast the favorable reception of the company by local and central political powers with discontent by the public, which blames multinationals for the continued rise in the price of electricity. Compliance with the company’s code of ethics in all territories in which it operates is another issue that is discussed.