What Will Become of AMLO's Power Sector Reforms?

Energy attorney Adrián Ortiz de Elguea was quoted in the Inter-American Dialogue's Energy Advisor on the implications of a decision by Mexico's Supreme Court striking down provisions of the country's 2021 power sector reform. In its ruling, the court sided with businesses that argued favoring the state-owned Federal Electricity Commission (CFE) over private companies violated constitutionally protected principles of free competition. Mr. Ortiz explained this means that while the CRE will maintain leadership in certain areas, it will no longer be granted a special privilege over private investors. The ruling provides legal certainty for investors and encourages clean energy generation, though Mexico's upcoming presidential election could influence future investment. Overall, Mr. Ortiz noted the court decision reduces pressure from potential lawsuits by foreign companies and should enable more competitive, efficient energy sources for consumers.

"The resolution of the Supreme Court does not negatively affect consumers. On the contrary, it enables the introduction of more efficient energy generation sources to consumers, which will be reflected in the long term in more competitive tariffs, as well as in incentives for the generation of clean energy," he said.

READ: What Will Become of AMLO's Power Sector Reforms? (Mr. Ortiz's comments begin on page 6)