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Judge halts Mexico’s electricity law favoring state-run utility

03/19/2021
Judge halts Mexico'Judge halts Mexico's electricity law favoring state-run utilitys electricity law favoring state-run utility

Photo: Agencia Reforma (Jorge Peña)

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• INJUNCTION: A federal judge issued Friday a preventive injunction against the implementation of a controversial electricity law backed by Mexican president Andrés Manuel López Obrador seeking to favor state-run utility CFE. The injunction is in place until the merits of the case are decided.

 

• APPEAL: While the Mexican government can still appeal it before a higher court, the judge’s decision considered that the injunction was needed to prevent economic damage to the electricity sector, to ensure competition and to protect the environment.

 

• NATIONWIDE: “Although it was requested by only two companies that carry out regulated activities in the (Mexican) electricity sector, it must be specified that the effects of this precautionary measure must be of a general level”, said federal judge Juan Pablo Gómez Fierro.

 

• INTERNATIONAL: Earlier this month, the Biden administration said it monitoring the legal saga of Mexico’s electricity law after the US Chamber of Commerce said it violated the USMCA trade deal. President López Obrador has threatened with a constitutional reform if the courts rule against him.

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