MEXICO CITY, April 12 (Reuters) - Some terms of a Mexican
proposal sent last month to Congress to change hydrocarbons
legislation would affect competition in the industry and raise
prices for consumers, Mexico's federal economic competition
commission said on Monday.
In a statement, the anti-trust watchdog, known as COFECE,
also said that if the initiative is approved, it would generate
legal uncertainty in the industry and distort the system of oil
The watchdog also criticized part of the legislation that
would modify the country's hydrocarbons law to allow suspensions
of permits, saying that could violate companies' rights.
The proposed legislation is part of leftist President Andres
Manuel Lopez Obrador's efforts to strengthen state control of
the energy market at the expense of private capital.
He argues previous administrations skewed the market in
favor of business interests and were intent on carving up
national oil firm Petroleos Mexicanos (Pemex) and power utility
the Comision Federal de Electricidad (CFE).
COFECE has also criticized previous legislative initiatives
on energy put forward by the Lopez Obrador administration.
(Reporting by Adriana Barrera, Dave Graham and Ana Isabel
Martinez; writing by Laura Gottesdiener; Editing by Dan Grebler)