MEXICO CITY, March 7 (Reuters) - Mexico's anti-trust watchdog on Monday doubled down on its criticism of the president's proposed changes for the electricity sector, arguing it would undermine competition, cause prices to rise and hinder the development of the sector.
The Federal Economic Competition Commission (COFECE) has previously recommended that lawmakers do not approve the bill championed by President Andres Manuel Lopez Obrador, who argues it is needed to keep energy prices low.
Last year, Lopez Obrador proposed the sweeping reform that would, if enacted, prioritize dispatch of power from the country's state-owned Comision Federal de Electricidad (CFE), overturning current laws that prioritize the lowest-cost energy even if it comes from private generators.
Under the proposal, which would require a congressional super-majority to pass since it involves constitutional changes, the CFE would get an almost complete monopoly over the power sector, COFECE said, adding that the changes would also limit the participation of private companies and weaken regulators.
Others critics of the bill have said it would will delay the transition to cleaner energy since CFE power plants mostly burn fossil fuels, as well as scare off would-be private investors.
The bill marks the latest attempt by the president and his allies to reverse a landmark energy opening passed by Lopez Obrador's centrist predecessor, and return more control of Mexico's energy industry to state-run companies. (Reporting by Adriana Barrera; Editing by David Alire Garcia and Cynthia Osterman)