Saturday, May 18, 2024

Supreme Court rules against government’s energy policy

The Supreme Court (SCJN) has rescinded key elements of a federal energy policy in a major setback for the government, which is trying to reshape the electricity market to favor the state-owned Federal Electricity Commission (CFE).

The court, which last June suspended the energy reliability policy pending a final ruling, definitively struck down 22 provisions of the same policy, which was published by the Energy Ministry (Sener) last May.

By four votes to one on Wednesday, the second chamber of the SCJN invalidated provisions in the policy – which imposed restrictive measures on the renewable energy sector – that it ruled violated the constitution in areas including free competition and sustainability. Only five provisions of the Sener policy were declared legal.

The court’s decision came in response to a complaint filed by Mexico’s antitrust regulator, the Federal Economic Competition Commission (Cofece). The ruling is a blow for the government’s plans to sideline private and renewable companies from Mexico’s power market.

The government sent a bill to Congress on Monday that proposes a sweeping overhaul of the electricity market to favor the CFE but the legislation, which is expected to be approved, will almost certainly be challenged and could also be struck down by the Supreme Court.

That eventuality, which appears likely based on Wednesday’s decision, would put a sizable dent in President López Obrador’s ambition to wind back the previous government’s energy form that opened up the sector to foreign and private companies for the first time in almost 80 years.

Among the energy policy provisions rescinded by the Supreme Court on Wednesday was one that gave priority to safety in the dispatch of power over economic efficiency.

Another provision that was struck down allowed the National Energy Control Center to determine – based on criteria established by the Energy Ministry itself – whether an application to supply power to the national grid should be considered or not “without taking into account the general technical specifications approved” by the Energy Regulatory Commission.

The court said the provision could lead to the “interconnection applicant” – most likely a private company – being unfairly shut out of the electricity market.

Source: Reforma (sp) 

Have something to say? Paid Subscribers get all access to make & read comments.
If you want to cross a US border with a dog, you need to follow these rules.

What are the new requirements for crossing the US border with a dog from Mexico?

Starting Aug. 1, all dogs entering the U.S. will need to have a microchip, among other requirements.
The boat where the Navy found the supposed cocaine also carried three people and 18 drums of a petroleum product.

Mexican Navy seizes 3 tonnes of cocaine off Quintana Roo coast

The navy reported seizing 153 packages of "white powder," along with 18 drums of presumed gasoline — and made three arrests.
Tacos are "Mexican-style sandwiches" according to an Indiana court ruling.

Is a taco a ‘Mexican-style’ sandwich? Indiana judge rules yes

The ruling allows Fort Wayne business owner Martín Quintana to open a taco restaurant in a "sandwiches-only" location.