Mexico's Supreme Court Overturns Government's Electricity Legislation
The ruling, a blow to President Lopez Obrador's statist agenda, prevents the law favoring state-owned utility CFE over private firms from being applied.
- Mexico's Supreme Court has ruled against the government's nationalistic electricity legislation, which prioritized the state-owned utility CFE over private energy companies.
- The ruling prevents the controversial law from being applied to companies, marking a significant blow to President Andres Manuel Lopez Obrador's statist agenda.
- The court stated that the law violated the principles of competition and disincentivized new projects that supported the country's sustainable development goals.
- The decision reduces the chance of arbitration panel intervention in ongoing trade disputes with the US and Canada over Mexico's nationalistic energy policy.
- Despite the ruling, President Lopez Obrador has found other ways to strengthen Mexico's state energy producers, including purchasing $6 billion worth of national gas plants and a wind farm.
Financial Post 
Associated Press 
