• INJUNCTION: Mexico’s Supreme Court granted a temporary injunction in favor of the country’s antitrust body (COFECE) which is seeking to halt a new López Obrador administration’s electricity policy that gives preference to state-owned utility (CFE) over private renewables companies.
• MERITS: Only days after COFECE presented a constitutional challenge against the so-called “power reliability policy”, justice Luis María Aguilar allowed the complaint to be considered by the Supreme Court in the coming months. COFECE argues that the policy violates competition rules.
• TEMPORARY: “It is appropriate to grant the precautionary measure to the effect that all effects and consequences of the agreement are suspended… until the merits of the present matter are resolved”, said Aguilar on Monday. The López Obrador administration can appeal the verdict.
• POLICY: Using the coronavirus emergency as an excuse, the López Obrador administration published in May its new “power reliability policy” arguing that power from private renewables companies was not to be depended compared to electricity produced by state-owned CFE.
