A Mexican court has ordered the new electricity law, which aims to strengthen the state-run company Comision Federal de Electricidad, to be suspended indefinitely (CFE).
President Andrés Manuel López Obrador supports the bill because he wants the government to have more control over the energy market. The electricity market, according to President López Obrador, was skewed in favour of private operators under the previous administration.
Bimbo and Walmart Inc. have filed legal challenges to the law, and two unidentified firms have asked for the law to be put on hold. The US Chamber of Commerce has expressed concern that the new law violates the USMCA and could result in a monopoly in the electricity sector.
The injunction will remain in effect until the merits of the case are decided. The injunction was necessary, according to the judge, “to prevent economic harm to the electricity sector, to ensure competition, and to protect the environment.” The issue has been referred to the Supreme Court by President López Obrador. “If it is declared unconstitutional, the interests of private businesses will win out,” President López Obrador stated. Judges must be denied the right to speak if they do not act justly.”
If the law is challenged in the Supreme Court, 11 judges must vote against it in order for it to be declared unconstitutional.