MEXICO CITY (Pakistan Point News / Sputnik - 30th June, 2020) The Supreme Court of Mexico ruled on Monday to terminate the Energy Ministry's recently adopted policy on electricity providers that caused the country's antitrust regulator to seek judicial intervention over breach of fair competition.
Last Monday, the Federal Economic Competition Commission (Cofece) filed a complaint with the Supreme Court to challenge the set of new energy regulations which many feared would give state-affiliated companies the upper hand over private generators.
"The plaint of Cofece has been satisfied to impose restrictions aimed at suspending the effect and consequences of the Agreement on the Reliability, Consistency and Safety of the National Energy System, published in the Official Journal of the Federation on May 15, for as long as the issue remains unsolved in essence," the ruling read, as published on the court's website.
The terminated policy planned to give the government the power to prioritize the output of energy from fossil fuels, which is predominantly produced by the Federal Electricity Commission, over electricity from renewable sources, which is predominantly produced by private companies. Additionally, private generators were to be charged for using the infrastructure networks.
In explaining the reform's rationale, Mexican President Andres Manuel Lopez Obrador said it was to prevent further privatization of the country's energy sector by private companies with preferential rights catered to them by certain corrupt politicians.
