• 3 minutes Australian power prices go insane
  • 7 minutes Wind droughts
  • 11 minutes  What Russia has reached over three months diplomatic and military pressure on West ?
  • 4 mins Is Europe heading for winter of discontent with extensive gas shortages?
  • 11 hours GREEN NEW DEAL = BLIZZARD OF LIES
  • 3 days The United Nations' AGENDA 2030 - The vision for One World Governance ...an article by the famous Dr Robert Malone
  • 2 days "Mexico Plans to Become an Export Hub With US-Drilled Natural Gas" - Bloomberg - (See image)
  • 4 days Hopes Are Dashed For International Oil Companies In North Iraq
  • 2 days 87,000 new IRS agents, higher taxes, and a massive green energy slush fund... "Here Are The Winners And Losers In The 'Inflation Reduction Act'"-ZeroHedge
  • 1 day "How to Calculate Your Individual ESG Score to ensure that your Digital ID 'benefits' and money are accessible"
  • 3 days The Federal Reserve and Money...Aspects which are not widely known
Charles Hugh Smith

Charles Hugh Smith

Charles Hugh Smith has been an independent journalist for 22 years. His weblog, www.oftwominds.com, draws two million visits a year with unique analyses of global…

More Info

Mexico Energy Reform Sparks Wave Of Lawsuits

The Mexico chapter of the International Chamber of Commerce (ICC) expects a wave of international arbitrations and lawsuits in the coming weeks after Mexico enacted this week a new law that favors state-owned electricity generation companies over private power firms.

Mexican President Andrés Manuel López Obrador pushed in recent weeks a new law for the country’s electricity sector, which strengthens state control over the power generation sector by promoting state-owned companies.

The antitrust regulator of Mexico, COFECE, said last month it recommends the lawmakers not to approve the new law because it would seriously undermine competition in the electricity generation and sales markets.

The new law, which came into force earlier this week, stipulates that state-held power companies—which generate electricity predominantly from fossil fuels—have priority over privately owned power firms when electricity is being bought.

“It appears there will be a wave of constitutional injunctions,” the president of ICC Mexico, Claus Von Wobeser, said, as carried by The Associated Press.

“All of the affected companies are going to file appeals,” Von Wobeser added.

The U.S. Chamber of Commerce warned in February that the then-proposed reform to Mexico’s Electrical Industry Law could create a monopoly and violate Mexico’s commitments under the U.S.-Mexico-Canada Agreement (USMCA).

Related Video: Can Saudis Defend Aramco from Houthis?

“Unfortunately, this move is the latest in a pattern of troubling decisions taken by the Government of Mexico that have undermined the confidence of foreign investors in the country at the precise moment enhanced foreign direct investment in Mexico is needed more than ever,” Neil Herrington, U.S. Chamber of Commerce Senior Vice President of the Americas, said in a statement last month.

“Further, these changes would significantly raise the cost of electricity and limit access to clean energy for Mexico’s citizens,” Herrington said.

López Obrador has also been a vocal critic of the energy reform of his predecessor Enrique Peña Nieto, who opened in 2013 Mexico’s oil and gas sector to private investment for the first time in seven decades. The incumbent Mexican President seeks a greater role for Pemex in reversing the downward trend in Mexican oil production and is criticizing the energy reform and the foreign oil firms for failing to do so.    

By Charles Kennedy for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage



Leave a comment

Leave a comment

EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News