The European Union and Canada have formally raised concerns to Mexico about rules they say endanger renewable energy projects, escalating tensions with its government, which late on Friday moved to tighten its control over the power industry.
FILE PHOTO: Mexico's Energy Minister Rocio Nahle gestures next to Mexico's President Andres Manuel Lopez Obrador during a news conference at the National Palace in Mexico City, Mexico, December 9, 2019. REUTERS/Edgard Garrido/File Photo
The highly unusual diplomatic intervention by Canada and the European powers, some of Mexico’s closest allies, underlines the frustration felt by foreign governments over President Andres Manuel Lopez Obrador’s handling of energy policy. The letters raise concerns about rules issued by electricity regulator CENACE last month that suspended the operation of new renewable energy plants in Mexico, arguing it was necessary to safeguard power supply during the coronavirus outbreak.
Legal experts are confident the measures are in breach of a number of existing laws and would be struck down in court, said the source, who spoke on condition of anonymity because steps to fight the rule changes were still being drawn up.
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