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Mexico – Senate Approves Amendment of Mexico's Electricity Industry Law | Mayer Brown - Energy Forward

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Following the House of Representatives discussion and approval of the draft Amendment of the Electricity Industry Law proposed by President Andrés Manuel López Obrador on February 1, 2021 (the “Amendment”), on March 03, 2021, the Senate approved the Amendment. After five hours of discussion, the Senate voted 68 in favor and 58 against the Amendment.
As mentioned in our
previous Legal Update, the Amendment establishes the modification of several articles of the law with the ultimate purpose of strengthening the Federal Electricity Commission (
Comisión Federal de Electricidad, “CFE”) by implementing:
No free competition. Deleting the provision that states that the generation and commercialization of electricity are services that shall be provided in a regime of free competition. ....

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House of Representatives Approves the Amendment of Mexico's Electricity Industry Law | Mayer Brown - Energy Forward

Recently, the Second Chamber of the Mexican Supreme Court overruled the
Policy for the Reliability, Safety, Continuity and Quality of the National Electric System (the Policy ), because such Policy included unconstitutional provisions that would adversely affect competition in the electricity market. The Amendment emulates several provisions of such Policy, which is one of the reasons why it is seen as another blow to the power industry.
As mentioned in our previous analysis, one of the most relevant features of the Amendment is the modification of the dispatch order, disregarding economic efficiency mechanics, giving preference to the Federal Electricity Commission (
Comisión Federal de Electricidad CFE ) over other generation plants, which will result in more expensive and dirty energy. ....

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Power market war and outlook for 2021

Power market war and outlook for 2021
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