Mexico: court suspends new electricity law
A Mexican court issued a suspension of the new electricity law that aims to strengthen the state-run company, Comisión Federal de Electricidad (CFE). The law is supported by President Andrés Manuel López Obrador, who wants to increase state control of the energy market. López Obrador claimed that under the previous administration, the electricity market was skewed in favor of private operators. Grupo Bimbo, Walmart Inc and two unnamed companies filed challenges against the law. The US Chamber of Commerce expressed concern that the new law violates the US-Mexico-Canada Agreement (USMCA) and may create a monopoly in the electricity sector. The injunction will be in place until the case is decided on its merits. The judge asserted that the injunction was necessary “to prevent economic damage to the electricity sector, to ensure competition, and to protect the environment.” (Photo of power lines in Ixtapaluca via Wikimedia Commons)