Parts of Mexico’s controversial reform of the hydrocarbons law were suspended by a federal judge, paving the way for a significant legal battle.
Competition judge Juan Pablo Gómez Fierro, who previously was the first to suspend the entirety of a previous reform of the general electricity law, suspended the effects of the new law’s article 57 and its fourth and sixth transitory provisions.
The suspension was awarded a mere six days after the law was published in the country’s official gazette. The new electricity law was suspended even faster, two days after it was published, pending a series of appeals.
Like with the previous suspension, Gómez argued that suspending the new rules only for the company that had made the request (Grupo Base Energético) would be unfair.
“This would cause distortions in the hydrocarbons industry, affecting competition and the development of the sector, which is precisely one of the adverse effects this measure seeks to avoid,” Gómez wrote. Therefore, the suspension will have a general application.
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