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Mexico's Supreme Court upholds March 2021 changes to the Electricity Law

The Supreme Court of Mexico has upheld the constitutionality of the electricity industry law that was adopted in March 2021 and that required power grid operators to take power generated by state-owned power utility CFE in priority over private generators. Hydropower plants operated by CFE would have priority, followed by other CFE-operated power plants, and private solar and wind power plants. In addition, the law cancelled CFE’s obligation to buy electricity through competitive auctions and forced regulators to cancel permits for private generators that build power plant for self-consumption. The law was immediately contested by private energy companies, leading lower courts to suspend the law to avoid breaching antitrust rules, and an action of unconstitutionality was filed to the Supreme Court.

In addition, the Mexican President is considering amending the national mining law to secure control of national lithium deposits.

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