Federal judges in Mexico have now suspended the implementation of controversial new legislation in the power sector on both economic and environmental grounds. 

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Greenpeace Mexico on Tuesday announced it had successfully lobbied for a judicial order suspending, on a provisional basis, implementation of the new rules that were passed by Mexico’s Senate on March 3.

The rules, if enacted, would modify Mexico’s electric industry law to give priority in the electricity dispatch order to generation assets owned by CFE, regardless of cost, followed by private sector generators. 

The rules also would remove the obligation for CFE to purchase power via competitive auctions, allow the revocation of electricity self-supply permits, and authorize the modification and/or early...