Unconstitutional reform to the Electrical Industry Law

In a session on January 31, 2024, the Second Chamber of the Supreme Court of Justice of the Nation, when resolving the protection under review 164/2023, decreed as unconstitutional various provisions of the reform of the Electrical Industry Law of 2021 to consider that they transgress the principles of competition and free competition that constitutionally govern the electricity sector.

Specifically, the Second Chamber of the Supreme Court of Justice of the Nation determined as unconstitutional the articles of the reform of the Electrical Industry Law of 2021 that sought, on the one hand, to introduce changes in the order of priority in the dispatch of electrical energy with the creation of electrical energy coverage contracts with a commitment to physical delivery that could only be entered into by some participants in the electrical sector (basic service providers), granting them benefits in the interconnection to the energy transmission and distribution networks, as well as as in the allocation and dispatch of energy; On the other hand, eliminate the obligation of basic service providers to enter into electricity coverage contracts through auctions, as well as modify the mechanism for granting clean energy certificates, including generators that were not originally contemplated.

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