Mexican Supreme Court Rules Against President’s Energy Plan

Published: Monday, February 8, 2021 - 5:05am

Last week, the Mexican Supreme Court ruled against a policy that favors the Federal Electricity Commission, the national energy utility.

The country’s Federal Economic Competition Commission challenged the 2020 policy on the grounds that it undermines competition in the generation and supply of electricity. And with a 4-1 vote last Wednesday, the court struck down a number of elements of the policy.

Mexico’s Interior Minister Olga Sanchez said the ruling would be respected, but also noted that Mexico’s legislature is currently considering a bill that would further prioritize the country’s energy utility over private producers.

The U.S. Chamber of Commerce criticized the legislation Friday, saying it could make the state utility a monopoly and violate commitments Mexico made in the new USMCA trade deal.

“Further, these changes would significantly raise the cost of electricity and limit access to clean energy for Mexico’s citizens,” the Chamber’s Senior Vice President of the Americas Neil Herrington said in a Friday release.

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