Mexico high court OKs preference for state power plants

By MARÍA VERZA
Associated Press

MEXICO CITY (AP) — Mexico’s Supreme Court has ruled constitutional a controversial energy law pushed by President Andrés Manuel López Obrador that gives government-owned power plants preference over private competitors. The law took effect in March 2021, but a number of private energy companies sought injunctions blocking enforcement. The law in Thursday’s ruling establishes that electricity must be bought first from government power plants, which use primarily coal, oil and diesel. If demand requires it, additional electricity could be purchase from private wind, solar and natural gas plants. Critics say the law will create a de facto state monopoly, hurt competition and force Mexicans to buy more expensive and polluting electricity.