The Energy Reform represents one of the greatest efforts to achieve a profound transformation in one of the sectors with the deepest tradition in our country. Since the constitutional reform of December 2013, hundreds of laws, regulations, decrees, guidelines, general provisions, operating manuals, agreements, resolutions, and other related documents have been published.
The reform represents not only a change in the regulatory framework of Mexico’s energy sector, but also a paradigm shift aimed at creating a modern and efficient market operating under principles of competition and regulation. Since its enactment, policymakers and regulators have focused on promoting the reform’s economic potential: higher revenues, more jobs, lower prices, economic growth, and development.
However, the economic results have not yet been fully realized. On the one hand, the reform coincided with unfavorable conditions in international markets, such as the collapse of oil prices. On the other hand, reforms of this magnitude are not implemented overnight. In the United Kingdom and California, to cite just two examples, consolidating structural reforms in the energy sector took more than a decade. In this regard, considering only the economic dimension of the reform, the sector can be seen as moving forward, albeit cautiously. The pieces are beginning to fall into place, and a sector on the path toward consolidation is gradually emerging.
Nevertheless, the social dimension has remained a pending issue on the public agenda, particularly in its energy-related aspects. Many topics fall into this category: dispute resolution among private parties, land access and occupation, guidelines for the preparation of social impact assessments, consultation with Indigenous peoples, social witnesses, local content, consumer empowerment, energy poverty, access to energy, among others. Achieving the success of a reform of the scale of the Energy Reform requires that its social dimension not be overlooked. This should be approached as a deliberative and participatory process involving stakeholders from the public sector, private sector, academia, and civil society in order to create a public agenda that addresses the social aspects associated with the development of the country’s energy sector.
The success of the Energy Reform should not be measured solely in terms of economic outcomes, but also in terms of social inclusion, public acceptance, and social well-being. Only when the results of the economic dimension are matched by progress in the social dimension will we be able to speak of a truly successful reform.
This article was originally published by Mexican Academy of Energy Law (AMDE)
Date: August 20, 2016
Original Link: https://amde.com.mx/el-aspecto-social-de-la-reforma-energetica-un-tema-pendiente-en-la-agenda-publica/[offline]
Archived Link: https://web.archive.org/web/20190827004535/https://amde.com.mx/el-aspecto-social-de-la-reforma-energetica-un-tema-pendiente-en-la-agenda-publica/ [Archived]
Notes: Co-authored with Edgar Alvarado Domínguez, M.A.