Interview with Franciso Salazar

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.

The title page of this interview may be downloaded here.

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Written by

Mexico Energy Intelligence

Baker & Associates offers niche-market business and policy intelligence related to Mexico's oil and gas, power and chemical industries. Over 1,000 reports have been issued in the last 20 years. Subject matter expert and publisher George Baker, who directs the firm, has carried out consulting assignments starting in the late 1970s at the height of the Oil Boom in Mexico. He brings bilingual and bicultural skill-sets to understanding and responding to challenges of business and public policy, coupled with a deep familiarity with the history and idiosyncrasies of the Mexican operating environment.