Energy

The Mexican legislation renders a stay in order impending the Clean Energy Sector

The Second District Court of Regulatory Matters Specialized of International Competition, Media, and Telecommunications in Mexico released a provisional suspension order obtained on April 29, 2020, and May 15, 2020, simultaneously to continue with the demand of the Regional Energy Control Center and Secretary of Energy. The above judgment ruled out based on the framework of a request by the Environmental NGO Greenpeace Mexico, S.C., for an Amparo.

For two primary reasons, the judicial ruling is a significant development. First, the Amparo proposal represents the first legislative decision made against the CENACE bid and the SENER regulation. Eventually, as the NGO submitted the appeal, the statutory consequences of a stay would favour energy industry actors momentarily, as court consideration meets a “valid interest” standard, which requires policy activity with public interests in mind checked.

The court determined that SENER produces the following jurisdiction, which can necessitate a stay order. Additionally, the commitments enforced on governments in the power sector and the implementation of standards on the deployment of energy sources (impacting existing laws on the disbursement of instalment licenses, interconnection demands, and the delivery guidelines of alternative energy sources).

In compliance with its legitimacy, the court ruled that the applicant was eligible to seek a temporary residence order as a non-governmental organization, which advocates public policy reform and environmental conservation. The applicant also has a “legitimate reason” to appeal to the directives as unlawful because of a potential infringement on fundamental rights and freedoms: the right to a safe atmosphere, security, and fair trade in energy supply.

In the public interest, the court ruled that the residence regulation would not harm the federal regulation requirements since, in theory, it would then safeguard fundamental rights by requiring clean energy to be utilized to achieve the sustainable development of individuals. Secondly, it might enable Mexico to conform to national legislation and international agreements, like the Paris Agreement, and its responsibilities and liabilities. Finally, there is no proof to suggest that Mexico’s aggressive defense will “paralyze” its stay.

The court planned a proceeding on June 4, 2020, to revise the residence estimation. The Government of Mexico may present a motion for the petition for an order by the state court to stand before a state supreme court. When no such appeal is submitted, or the proceeding takes place by a circuit court of appeal without judgment, the stay order may be conclusive and come into effect unless an ultimate decision is reached on the validity. 

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