Reliability, Safety, Continuity and Quality Policy Suspended

On Oct. 21, the National Supreme Court of Justice (SCJN) through an unanimous vote,  decided to suspend indefinitely SENER’s Policy on Reliability, Safety, Continuity and Quality for the National Electrical System.  

SENER’s policy was published on May 15 by Minister of Energy Rocío Nahle and its objective was to limit private renewable electricity production and prohibit testing of clean energy power plants. SENER reports that this decision was the result of decreasing electricity demand during the pandemic and unstable solar and wind generation that harms electrical system efficiency.

On Thursday’s morning conference ,President López Obrador said that the 2014 Energy Reform presented by Enrique Peña Nieto’s administration sought to benefit private companies, the destruction of PEMEX and CFE and the privatization of the whole energy sector. In addition, the president has said that the reform was an attack to the energetic sovereignty and national security.

On June 29, SCJN suspended provisionally SENER’s new policy after the Federal Economic Competition Commission (COFECE) file a constitutional suit declaring that this new policy violated fundamental principles of the Federal Constitution related to competence and free competition in the energy industry.

Siega company, Greenpeace, the Mexican Center for Environmental Law and 14 wind and solar projects also denounced the unconstitutionality of this new policy and subsequently achieved its provisional suspension.

On Wednesday, Juan Luis González Alcántara, President of SCJN, presented a resolution to this situation that was approved by all members of the First Chamber, in which the suspension of June 29 was ratified. In addition, the Chamber declared unfounded the appeal of the Legal Counsel of the Presidency that aimed to reverse this suspension.

According to El Economista, Juan Pablo Gómez Fierro, Second District Judge focused on administrative matters and specialized in economic competition, broadcasting and telecommunications, clarified that the policy has been suspended, since it violates investments that are already part of the industry sector.

President López Obrador mentioned on Thursday’s morning conference that if necessary, he will propose a constitutional reform that will seek the general interest and the State’s dominance over natural resources. Furthermore, the president confronted Iberdrola, one of the most important electricity companies in the country, after Director José Ignacio Sánchez declared that Iberdrola will not continue to invest in Mexico, especially if the government does not respect its regulatory framework.

López Obrador accused Iberdrola of taking advantage of unfair agreements that were made during Peña Nieto’s presidency and he criticized the company’s decision of hiring former President Felipe Calderón and former Energy Commissioner, Georgina Kessel, as company advisors. It was implied that because of their rivalry, the company’s relationship with the government will deteriorate.