"Sheinbaum discusses potential implications of Iberdrola's alleged departure from Mexico, considering the possibility of purchasing related power plants"
Iberdrola's Potential Exit from Mexico: President Sheinbaum Pardo's Response
President Claudia Sheinbaum Pardo has addressed the potential exit of Iberdrola from Mexico, stating that the current rules for development are clear and acquiring the company's plants is not on the agenda at the moment.
The federal executive's comments come after a report by Spanish media outlet "El Confidencial" about Iberdrola's exit due to the legal uncertainty caused by the current government's operation. However, President Sheinbaum Pardo emphasized that it's in the businessmen's interest for the Federal Electricity Commission (CFE) to be strong.
Iberdrola, a Spanish energy company, has recently hired Barclays to sell 15 renewable power plants in Mexico, valuing the portfolio at approximately $4.7 billion. This move aligns with Iberdrola’s broader strategic focus on expanding investments in countries with stable, predictable, and incentivizing regulatory frameworks, such as the United States and the United Kingdom.
President Sheinbaum Pardo has announced that she will review Iberdrola's situation following the reports of its potential exit. She held a meeting with authorities from the Ministry of Energy the day before her press conference.
The federal executive recalled the recent changes to the law to strengthen the Federal Electricity Commission (CFE). She highlighted a "very ambitious" program for new generation plants.
Despite Iberdrola's plans to divest from Mexico, the federal executive emphasized that private investment in electricity generation is viable and possible, with legal certainty for businesses to do so. The private sector can generate electricity and sell it to CFE or the electricity market, with around 6,000 megawatts of capacity available.
However, President Sheinbaum Pardo called for self-supply societies to be terminated, as they are currently illegal. She urged businessmen to comply with the law, emphasizing that everyone, including businesses, should comply with Mexican legislation.
The court has established a civil path to sue doctors for negligence, regardless of whether they work in a public institution. Details of the court's ruling were not provided in the article.
Having a strong Federal Electricity Commission benefits everyone, including businessmen and the population. President Sheinbaum Pardo believes that the potential exit of Iberdrola from Mexico does not seem to be problematic, as there are many companies that want to continue participating in Mexico.
Any potential evaluation of Iberdrola's exit or its plants is not currently contemplated by the federal executive. The federal executive stated that Iberdrola's withdrawal would not be necessary because the current rules for development are clear.
In conclusion, President Sheinbaum Pardo has responded to the potential exit of Iberdrola from Mexico, stating that the current rules for development are clear and acquiring the company's plants is not on the agenda at the moment. She emphasized the importance of private investment in electricity generation and the need for businesses to comply with Mexican legislation. The federal executive has also highlighted the benefits of a strong Federal Electricity Commission for both businesses and the population.
The potential exit of Iberdrola from Mexico, a Spanish company in the energy industry, has sparked discussions about the country's regulatory climate for foreign investment. Despite this, President Sheinbaum Pardo believes that private finance in the energy sector can thrive with legal certainty, as the population stands to benefit from a strong Federal Electricity Commission.
