The new LIE establishes that the state company will have priority to upload its energy to the network, modifying the order of the previous dispatch, based on an economic criterion that favored the generation of renewables for being less expensive.
The Supreme Court also validated the possibility of reviewing, renegotiating or terminating contracts with independent energy producers.old agreements that President López Obrador describes as “leonines” for the CFE, arguing that they damage the finances of the state company and favor private companies.
The court considered that, in this area, the changes to the law “do not violate the principles of non-retroactivity and legal certainty, since there are no acquired rights in aspects related to public order and they are sufficiently precise,” according to a statement. .
uncertain outcome
Despite the result, the vote in the Supreme Court of Justice was very close to being negative for the president -a nationalist in energy and oil matters- because the project as a whole obtained seven of the eight votes necessary to be rejected and only four that they endorsed it, enough to leave the changes to the LIE in force.
The new LIE has not entered into full force as it has been stopped in court. What happened in the highest court would not prevent new challenges to the law in court, according to experts.
“The counter-reform does not seem to pass. The amparos, if they reach the Court, will win by a simple majority,” said Víctor Ramírez, spokesman for the Mexico Climate and Energy Platform, on his Twitter account, referring that since the votes to rule out the reform will continue challenges to the application of the LIE.
The discussion in the Supreme Court takes place in the midst of the debate on a constitutional reform initiative in the electricity sector, sent by López Obrador to the Chamber of Deputies in October and is expected to be voted on next week.
This initiative basically contains the same changes already approved in the LIE, but the president decided to send it to modify the Constitution after the problems to start up the new LIE.
The United States has increasingly expressed its opposition to the president’s constitutional reform and the changes in the energy sector, arguing that they could put at risk investments of more than 10,000 million dollars by US companies in Mexico in these businesses.
Following the decision of the Supreme Court of Justice, the United States ambassador to Mexico, Ken Salazar, expressed his country’s concern that the highest court’s endorsement of the new LIE could generate “endless” litigation and uncertainty and obstruct the investment.
Source: Ambito
David William is a talented author who has made a name for himself in the world of writing. He is a professional author who writes on a wide range of topics, from general interest to opinion news. David is currently working as a writer at 24 hours worlds where he brings his unique perspective and in-depth research to his articles, making them both informative and engaging.
