“The principal concern of international companies and investors is the uncertainty that the electricity law could cause, and a lot of people are holding off on further investments while they wait to see what will happen,” Marcela Roque, Energy Director at Luxem Energía in Mexico City, told NGI’s Mexico Gas Price Index.

Marcela Roque

“Many investors have goals for capital allocation and, if Mexico isn’t the right platform for it, they will go to other countries where investment is more welcomed,” Roque said.

A Mexican federal court judge on Thursday suspended the implementation of the power sector law that would give priority to Mexican state utility Comisión Federal de Electricidad (CFE) in the electricity dispatch order over private-sector generators. Mexican government...