A court lifts the suspension of López Obrador’s electricity reform

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Mexico City, Jul 3 (EFE) .- The Government of Mexico reported this Saturday that a court lifted the judicial suspension of the electricity reform of President Andrés Manuel López Obrador, which prioritizes the state Federal Electricity Commission (CFE) to the detriment of the private and foreign generators.

“Considering that by themselves they do not cause any harm to individuals, a court revoked the definitive suspension of the reforms to the Electricity Industry Law,” the president’s spokesman, Jesús Ramírez Cuevas, said on Twitter.

Ramírez Cuevas added that “this resolution supports said reforms proposed by President López Obrador for the benefit of the people of Mexico.”

Last March, after the presentation of numerous injunctions, Judge Juan Pablo Gómez Fierro suspended indefinitely the controversial electricity reform “to protect free competition rights.”

The reform, approved in Congress at the proposal of López Obrador, requires that energy from old and fossil fuel plants of the CFE be supplied first over private renewable and combined cycle plants.

It also orders a retroactive review of self-supply permits and previous government contracts with independent energy producers, in addition to changing the rules of Clean Energy Certificates to give them to old CFE plants.

After the suspension, López Obrador threatened with a constitutional reform to accommodate his energy plan, but in the midterm elections on June 6, the ruling party lost the majority qualified to modify the Constitution.

Since coming to power in 2018, López Obrador has promised to reverse part of the energy reform of his predecessor, Enrique Peña Nieto, which opened the sector to private participation.

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According to López Obrador, the previous governments “looted” the public energy companies, CFE and Pemex, to benefit foreign private companies.

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