Interview with Franciso Salazar
ON DECEMBER 31, 2015, FRANCISCO SALAZAR completed ten years of public service as the president-commissioner of Mexico’s Energy Regulatory Commission (CRE).
Prior to Mr. Salazar’s appointment in 2005, CRE was a body whose primary function was the issuing of permits and the awarding of franchises to private companies involved in natural gas. Pemex Gas (PGBP) was effectively self-regulating, using its market position to dominate commerce in gas transportation and the molecule.
In this way, from 1995-2005 there was no competitive natural gas market in Mexico. Nor is there yet.
As of year-end 2015, all prices for energy products in Mexico are set by State agencies, the CRE among them.
That today there is the expectation of competitive markets—that is, unregulated prices—in natural gas and electricity with real-time price signals is the legacy of Francisco Salazar’s service in CRE.
The fulfilment of this expectation, however, is not guaranteed, owing to the continuing institutional challenges that he describes in this interview.
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