Se Apago la Luz?

Desde Mexico, DF

President Calderon launched what was essentially a military operation late Saturday night to take control of the state-owned enterprise Luz y Fuerza del Centro, the power utility for Mexico City and much of central Mexico. I saw approximately 1,000 federal police amassed along Eje Central at 11pm awaiting orders in the case that violence erupted at the utility and power was disrupted to its 25 million customers. I, and others, assumed the police presence was in response to the massive crowd that had assembled at El Angel de la Independencia following Mexico's qualification for the 2010 World Cup earlier that evening.

The president took to the airwaves on Sunday to explain his rationale. He cited the unsustainable nature of the utility, which received over $3 billion in subsidies last year, and whose powerful union, SME, has largely stifled previous reforms. He has effectively fired all 40,000 workers and pledges to only rehire 10,000. In the meantime, the national electricity commission will be running things down at LFC.

Public opinion of Calderon's move has been fairly positive, especially since the aerial shots on the evening news have shown that the lights are still on in the Valley of Mexico. Although the illuminated sign above the utility's offices reads "100 years of generating light and confidence" customers of LFC would beg to differ. They receive some of the worst service in the country in terms of the number and duration of blackouts.

The union has pledged to fight this most hostile takeover and has been joined by who else, Andres Manuel Lopez Obrador. They claim this move was more about demonstrating that the president retains a degree of power after the PAN suffered setbacks in the July elections. They have also wondered aloud why Calderon's criteria for breaking up LFC doesn't apply to the teacher's union and their leader, Elba Esther Gordillo, an influential ally of the president's.

Finally, La Jornada reports that the SME has published a list of entities that don't pay their light bill. If true, the list should be an embarrassment to the president whose own address is listed has one receiving a free ride. Others include numerous government offices and posh hotels in Polanco.