Mexican court delays discussion of anti-trust challenge to energy policy
28/01/2021 24:04
By Adriana Barrera
MEXICO CITY, Jan 27 (Reuters) - Mexico's Supreme Court on
Wednesday postponed a decision on how to proceed with an
anti-trust challenge to a policy proposed by the energy ministry
that aims to favor indebted state power company CFE.
If the Supreme Court were eventually to side with the energy
ministry, it would bolster nationalists in the cabinet of
President Andres Manuel Lopez Obrador who want to reverse the
previous government's energy liberalization.
Anti-trust regulator COFECE sent the challenge to the court
in mid-2020, shortly after the energy ministry issued a new
regulation that would give the government more power over the
electricity sector and boost CFE COMFEL.UL .
The policy modified rules on who can generate electricity
and in what quantity, and set new rules for renewable power
plants.
Local companies have taken legal action against the policy.
Pablo Lopez, a researcher at the Tec de Monterrey
university, warned that both companies and consumers would loose
out if the judges were to dismiss COFECE's anti-trust challenge.
"It could result in a loss of competitiveness in the sector,
but also the consumer loses since clean energies are highly
competitive in cost," Lopez said.
"It could create a precedent that inhibits investments in
the renewable sector and unnerve others that the institutional
framework of the sector is fragile."
Lopez Obrador, a sharp critic of the 2013 constitutional
overhaul enacted by his predecessor, has expressed a clear
preference for the government to play a central role in domestic
energy markets.
Last year, the president said he might reverse the energy
reform if he is unable to "rescue" CFE and state oil company
Petroleos Mexicanos, or Pemex PEMX.UL .
More recently, he has said that institutions like the
anti-trust regulator could be merged into ministries. Lopez
Obrador defended the idea on grounds of saving public funds.
urn:newsml:reuters.com:*:nL1N2JJ048
(Reporting by Adriana Barrera, additional reporting by Stefanie
Eschenbacher; Editing by David Gregorio)
((Stefanie.Eschenbacher@thomsonreuters.com;))