A Supreme Court ruling will maintain legal ambiguity around Mexico's electricity sector as the government pursues a constitutional reform that would bolster the country's state-owned power company against private competition -- icing out private renewable energy companies, potentially violating trade agreements and suggesting greater state involvement in other parts of the energy sector. On April 7, Mexico's Supreme Court ruled the Electricity Industry Law (LIE) that the government introduced in 2021 is constitutional, upholding changes to the legislation that gives preference to the state-owned Federal Electricity Commission on the electricity grid. However, a majority of justices voted against key articles of the law, which will allow lower courts to challenge its application in favor of private-sector involvement, complicating President Andres Manuel Lopez Obrador's plan to put a majority of his country's electricity market back under state control. ...
