New Amparo Spurs Further Controversy Over Energy Policy

On Monday, Judge Juan Pablo Gómez Fierro, Second District Judge in Administrative Matters specialized in economic competition, granted protection to the company Desarrollo Eólicos Mexicanos and extended this amparo to all electricity companies impacted by CENACE and SENER’s proposed changes against renewable projects That same day, during a Senate meeting, Minister of Energy Rocío Nahle defended SENER’s policy by saying that Peña Nieto’s Energy Reform favored private companies and that SENER’s new policies would be cheaper and more feasible.

Nahle also criticized the CELs that were part of the 2014 Energy Reform and explained that these are not profitable because they will represent a MX$100 billion (US$ 5 billion) expenditure in 20 years. In addition, she assured CELs have not stopped and are still being operated by CRE.

According to Judge Gómez Fierro, by limiting the participation of private companies in the electricity market, there will be no favorable conditions to improve the quality of supply to reduce tariffs. In addition, he considered that CENACE’s measures affected competition by discouraging the entry of new energy companies to the country.

Nahle explained to the Senate that SENER’S policy was planned to achieve self-sufficiency and eliminate fuel imports. She also mentioned that Mexico will fulfill its international commitments to reach 35 percent of electricity from clean energy.

According to her, between September 2019 and June 2020, three wind and solar projects had already started operations, while another six are still being tested.

Nahle explained that the loss of energy security is a consequence of Peña Nieto’s Energy Reform and that López Obrador’s government aims to balance and promote the participation of companies in the energy sector, while ensuring the benefit of national enterprises.

Nahle said that if SENER’s policy is rejected by the judges, López Obrador will propose constitutional changes to ensure energy security, which the Senate will have to consider for approval.