Federal Judge Suspends AMLO’s Electricity Reform

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A federal judge in Mexico on Thursday, March 11, less than 24 hours after it went into effect, suspended implementation of the nation’s newly minted electricity reform, which was rammed through Congress late last month by President Andrés Manuel López Obrador (AMLO).

The Second District Court for the Administration, Economic Competency and Broadcast Services for Mexico City ordered the suspension of the controversial bill, which has been challenged by Mexican and international energy companies, along with numerous commercial chambers and legal organizations both inside the country and abroad, stated that both the law itself and the collateral consequences of its implementation will remain suspended until further notice.

The overseeing judge said that while the court’s decision, which was based on potential environmental violations as well as unfair monopolies, was in response to a legal challenge raised by the Sonora-based Parque Solar Orejana solar energy firm, which would be one of the clean-energy firms directly effected by the new law, the ruling will apply to all electric energy producers since, otherwise, it would provide Parque Solar with a competitive advantage over other companies.

The court set an April 27 date to review the constitutionality of the new law and stated that it will reconsider the suspension of its implementation on Thursday, March 18.

The court’s ruling is certain to be challenged by the leftist AMLO administration, since the Mexican president has made government energy control by state-run monopolies one of the pillars of his so-called Fourth Transformation.

On Friday, March 12, AMLO said in his daily press conference that he was prepared to take the matter to Mexico’s Supreme Court.

…March 12, 2021


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