Energy Reform/Ken Salazar

Electric Reform. President López Obrador applauded the decision made yesterday by the Supreme Court of Justice (SCJN) regarding the electric reform and qualified it as “historic and patriotic.”

Yesterday, a rushed vote on the new electric reform took place in Congress. The electricity sector faced a major breaking point at the SCJN, as ministers were set to decide on the constitutionality of the Electric Industry Law (LIE), a decision that will shape the future of Mexico’s energy industry. With seven votes favoring the unconstitutionality of the law and four against, the LIE will reactivate and place the Federal Electricity Commission (CFE) with a stronger position in the market, although the lack of a qualified majority means legal routes remain open for those directly affected by the law. 

The court’s vote on the LIE is not over. The debate will continue because other resolutions are still pending regarding the compatibility of the LIE with international environmental and economic treaties, such as the clean energy certificate (CEL) mechanism, the revocation and review of permits, the National Electric System (SEN) and end-user tariffs.

Ken Salazar. US Ambassador Ken Salazar said that if approved the Electric Reform would cause his country to open lawsuits since it could hamper US companies´ investments in Mexico. Salazar expressed that the US respects Mexico’s sovereignty and its democratic processes. Nevertheless, there is concern about the Electric Reform of 2021 because it obstructs investment and generates uncertainty.

President López Obrador responded by saying that they can respectfully disagree and said that the Reform does not violate international treaties. Moreover, he added that he does not turn to international organizations to discuss the compromise of Joe Biden to regulate Mexican migrants in the US.

Click HERE for full transcript in Spanish