The electricity industry in Mexico is under stress. The President of Mexico has proposed amendments to the Electricity Industry Law that could result in the undoing of the energy reform that permitted private investment in the power market. In parallel, the Mexican Supreme Court issued a decision rejecting a number of provisions of the Ministry of Energy’s controversial Reliability Policy, which was challenged by the Mexican antitrust agency COFECE. Up until now, the Mexican judicial system has upheld the legality of the energy reform and pushed back against the government’s attempts to strengthen the Electricity Federal Commission (CFE) to the detriment of foreign investors. However, the President’s proposed amendment of the Electricity Industry Law evidences that the government will persist.

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