{"id":3594,"date":"2021-03-29T11:14:02","date_gmt":"2021-03-29T17:14:02","guid":{"rendered":"http:\/\/accesstomexico.mx\/blog\/?p=3594"},"modified":"2021-03-29T11:14:02","modified_gmt":"2021-03-29T17:14:02","slug":"mexico-power-sector-rules-now-halted-on-environmental-competition-grounds","status":"publish","type":"post","link":"https:\/\/accesstomexico.mx\/blog\/mexico-power-sector-rules-now-halted-on-environmental-competition-grounds\/","title":{"rendered":"Mexico Power Sector Rules Now Halted on Environmental, Competition Grounds."},"content":{"rendered":"\n
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NGI<\/a><\/p>\n\n\n\n

Federal judges in Mexico have now suspended the implementation of controversial new legislation in the power sector on both economic and environmental grounds. <\/p>\n\n\n\n

Greenpeace Mexico on Tuesday announced it had successfully lobbied for a judicial order suspending, on a provisional basis, implementation of the new rules that were passed by Mexico\u2019s Senate on March 3.<\/p>\n\n\n\n

The rules, if enacted, would modify Mexico\u2019s electric industry law to give priority in the electricity dispatch order to generation assets owned by CFE, regardless of cost, followed by private sector generators. <\/p>\n\n\n\n

The rules also would remove the obligation for CFE to purchase power via competitive auctions, allow the revocation of electricity self-supply permits, and authorize the modification and\/or early termination of offtake agreements between CFE and independent power producers, according to a fact sheet on the reforms published by analysts at EY Mexico.<\/p>\n\n\n\n

By agreeing to the provisional suspension, a judge recognized as valid Greenpeace\u2019s argument that the reforms \u201cdelay interminably the decarbonization of electricity production and the fulfillment of international commitments in matters of climate change,\u201d the environmental non-profit said.<\/p>\n\n\n\n

A hearing was scheduled for Thursday to determine whether the judge would grant a definitive suspension. A definitive suspension would prevent the new rules from being implemented until a verdict is reached on the underlying lawsuit.<\/p>\n\n\n\n

Numerous suspensions against implementing the new rules have already been granted in other lawsuits, including a definitive suspension granted by Judge Juan Pablo G\u00f3mez Fierro on Friday. <\/p>\n\n\n\n

Provisional suspensions typically are granted to plaintiffs within hours of filing a complaint, Daniel Salom\u00f3n Sotomayor of Mexico City-based law firm Gonzalez Calvillo told NGI\u2019s Mexico GPI. <\/em>Definitive suspensions come next, and remain in effect until a verdict is reached.<\/p>\n\n\n\n

The suspension awarded to Greenpeace is noteworthy in that it was granted in order to protect the environment as opposed to protecting competition in the market, Salom\u00f3n explained.<\/p>\n\n\n\n

A Greenpeace spokesperson also confirmed that this is the first suspension of the rules to be granted on environmental grounds. <\/p>\n\n\n\n

Greenpeace Mexico\u2019s Mar\u00eda Col\u00edn, environmental law specialist, said the proposed reforms open the door to producing electricity from fossil fuels such as fuel oil that are \u201chighly damaging for the population and the environment.\u201d<\/p>\n\n\n\n

The reforms in question have been widely criticized as a maneuver to ensure the purchase by CFE of high-sulfur fuel oil (HSFO) produced by state oil company Petr\u00f3leos Mexicanos.<\/p>\n\n\n\n

Col\u00edn described HSFO as \u201cthe residue that\u2019s left over after refining crude oil,\u201d noting that burning it produces sulfur dioxide particles.<\/p>\n\n\n\n

Mexico\u2019s courts have proven among the few effective counterweights to the controversial energy policies of President Andr\u00e9s Manuel L\u00f3pez Obrador, as evidenced by the injunctions against the power law. <\/p>\n\n\n\n

The policies have caused international energy companies to reevaluate plans to invest in Mexico, according to Marcela Roque, Energy Director at Luxem Energ\u00eda in Mexico City.<\/p>\n\n\n\n

\u201cThis \u2018counter reform\u2019 or \u2018fuel oil law\u2019 as some are calling it, presents several structural changes in the functionality of the market,\u201d Roque told NGI\u2019s Mexico GPI<\/em>in a recent interview. Dispatching electricity from more expensive plants would mean that CFE\u2019s distribution unit CFE Suministro B\u00e1sico would either have to raise rates for end users, or the government would have to increase subsidies for CFE, she said.<\/p>\n\n\n\n

\u201cAdditionally, market prices would be dictated principally by the costs declared by the CFE power plants, which can\u2019t guarantee transparency,\u201d Roque said. \u201cFinally, the price signals that are currently provided by marginal prices would be lost, which means the loss of information about areas where power plants and transmission lines should be constructed.\u201d<\/p>\n\n\n\n

Andrew Baker. (2021). Mexico Power Sector Rules Now Halted on Environmental, Competition Grounds. USA.\u00a0NGI<\/em>. Recuperado de\u00a0<\/strong>https:\/\/www.naturalgasintel.com\/mexico-power-sector-rules-now-halted-on-environmental-competition-grounds\/<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

NGI Federal judges in Mexico have now suspended the implementation of controversial new legislation in the power sector on both economic and environmental grounds.  Greenpeace Mexico on Tuesday announced it had successfully lobbied for a judicial order suspending, on a provisional basis, […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-3594","post","type-post","status-publish","format-standard","hentry","category-uncategorized","clearfix"],"_links":{"self":[{"href":"https:\/\/accesstomexico.mx\/blog\/wp-json\/wp\/v2\/posts\/3594","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/accesstomexico.mx\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/accesstomexico.mx\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/accesstomexico.mx\/blog\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/accesstomexico.mx\/blog\/wp-json\/wp\/v2\/comments?post=3594"}],"version-history":[{"count":1,"href":"https:\/\/accesstomexico.mx\/blog\/wp-json\/wp\/v2\/posts\/3594\/revisions"}],"predecessor-version":[{"id":3596,"href":"https:\/\/accesstomexico.mx\/blog\/wp-json\/wp\/v2\/posts\/3594\/revisions\/3596"}],"wp:attachment":[{"href":"https:\/\/accesstomexico.mx\/blog\/wp-json\/wp\/v2\/media?parent=3594"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/accesstomexico.mx\/blog\/wp-json\/wp\/v2\/categories?post=3594"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/accesstomexico.mx\/blog\/wp-json\/wp\/v2\/tags?post=3594"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}