Alert

Mexican Court Orders Provisional Suspension of the Amendment to the Electricity Industry Law

By resolution on March 10, 2021, the Second District Court sitting in Mexico City, which has jurisdiction over all of the Mexican Republic, granted in an amparo (constitutional proceeding) the provisional suspension of the effects and all consequences of the amendment to the Electricity Industry Law that was published in the Official Gazette of the Federation (DOF) on March 9, 2021.

This provisional suspension has general effects, meaning that all participants in the electricity market and others that are developing activities regulated in the power sector will benefit from this measure. The Court considered that the provisional suspension must have general effects to protect competition and free access between all participants in the electricity industry as well as to prevent market distortion.

The resolution orders that all government authorities/agencies, including the Ministry of Energy (SENER), the Energy Regulatory Commission (CRE), the National Energy Control Center (CENACE) and the Federal Electricity Commission (CFE), must comply with the provisional suspension. It will be in effect until the Court resolves as to the definitive suspension in the amparo.

According to the Court resolution, the Ministry of Energy must publish the suspension of the amendment to the Electricity Industry Law in the DOF and the legal provisions prior to the amendment will be temporarily restored.

To read the Spanish summary of the Court resolution, click here.

To read the alert en español, click here.

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