SCJN ratified, before the government of Colima, the reform of the Electricity Industry Law

The controversy over the reform of the Electricity Industry Law (LIE), promoted by the federal executive and approved by the legislature in 2021, continues to be talked about, since now the Supreme Court of Justice of the Nation (SCJN), ratified its position before the government of Colima.

And this Tuesday, April 19, the plenary of the Court dismissed the constitutional dispute promoted by the state of Colima against the decree that modified various provisions of the LIE, this by updating the cause of inappropriateness relating to the lack of legitimate interest.

According to the SCJN, this determination takes into account that “the contested decree does not affect the sphere of competence of the acting entity, whose guardianship is precisely the object of this type of constitutional control means”.

It should be noted that the reform promoted by the administration of President Andrés Manuel López Obrador (AMLO) in relation to the LIE, although the Congress of the Union was approved, was poorly received by the opposition, so that a group of senators, the government of Colima and the Federal Commission for Economic Competition (Cofece) ) filed actions of unconstitutionality before the highest judicial authority in Mexico.

In accordance with the SCJN review process, the complaint submitted by Miguel Ángel Osorio Chong (PRI), Miguel Ángel Mancera (PRD) and other federal legislators of the so-called parliamentary opposition was first addressed. To declare as contrary to the Political Constitution of the United Mexican States (CPEUM), this reform should have eight demonstrations against it, since a qualified majority is required.

In the summary of the vote on April 7, it can be seen that ministers Arturo Zaldivar Lelo de Larrea, Loretta Ortiz Ahlf, Yasmin Esquivel Mossa and Alfredo Gutiérrez Ortiz Mena were in favor; Luis María Aguilar Morales, Jorge Mario Pardo Rebolledo, Alberto Pérez Dayán, Javier Laynez Potisek, Norma Lucia voted against Piña Hernandez, Juan Luis Gonzalez Alcantara Carranca and Ana Margarita Rios Farjat.

Given this result, the amendments to the LIE are considered in accordance with the Constitution and the rule of law promoted by the Mexican government, so that future complaints (Colima's and Cofece's) will be subject to the precedent generated on April 7. However, and even if the Court's determination is respected, there were demonstrations condemning the vote of the Chamber of the SCJN.

For example, the Mexican Institute for Competitiveness AC (Imco) condemned the SCJN resolution on the LIE and warned that this will have a negative impact on Mexico's economic conditions, as they expect a negative environment for foreign investment in the sector.

As reported by the institute, “the main losers of the reform are renewable and clean energy plants”, since the order of dispatch stipulated by the reform gives priority to new electricity coverage contracts with a commitment to physical delivery, which in fact benefits the CFE, which, according to the A.C., “operate from fossil fuels.”

And although it is true that part of the CFE generating plants operate on fossil fuels, it must be pointed out that the Commission is the producer of electricity with the greatest contribution from renewable resources.

From this perspective, it should be recalled that private producers produce 56% of Mexico's carbon monoxide and 82% of its electricity with gas, which represents 55% of the market's supply. In addition, only 7% of their energy contributions are made from renewable sources such as wind and photovoltaic, which is intermittent.

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