Private investors in Mexico are rethinking their strategies against the country's amended comprehensive electricity law following recent legal setbacks, increasing uncertainty in its power sector, observers say. Specialized tribunals have begun revoking suspensions that prevented the recent changes to the law from taking effect. The suspensions had been granted to companies in the sector as well as organizations and individuals. The amended electricity law gives power plants owned by state utility CFE preference over privately owned facilities in the order of dispatch, ignoring the benefits of newer, cheaper technologies over dirtier, older ones. The law also eliminates incentives for the construction of new power plants using green technologies and removes benefits obtained by companies who generate their own power.
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