MEXICO CITY (Reuters) -Mexican President Andres Manuel Lopez Obrador's plan to increase state control of power generation was defeated in parliament on Sunday, as opposition parties united in the face of bill they said would hurt investment and breach international obligations.
His National Regeneration Movement (MORENA) and its allies fell nearly 60 votes short of the two-thirds majority needed in the 500-seat lower house of Congress, mustering just 275 votes after a raucous session that lasted over 12 hours.
Seeking to roll back previous constitutional reforms that liberalized the electricity market, Lopez Obrador's proposed changes would have allowed the state-owned Comision Federal de Electricidad's (CFE) plants to sell electricity ahead of other power companies.
It would have also shifted energy regulation from independent bodies to state regulators.
The contentious bill faced much criticism from business groups and the United States, Mexico's top trade partner as well as other allies who argued it would violate the regional trade deal, the United States-Mexico-Canada Agreement (USMCA).
Lopez Obrador, who touted the legislation as vital to his plans to "transform" Mexico, had argued the bill would have protected consumers and made the country more energy independent.