Greenberg Traurig Secures Victory Resulting in General Effects Against the Electric Energy Policy Issued by the Mexican Ministry of Energy

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The Energy and Natural Resources and Administrative Litigation Practices of Greenberg Traurig's Mexico City office successfully implemented a legal strategy for clients in the energy sector related to the electricity policy issued by the Ministry of Energy (SENER) in May 2020.

The Energy and Natural Resources and Administrative Litigation Practices of Greenberg Traurig's Mexico City office successfully implemented a legal strategy for clients in the energy sector related to the electricity policy issued by the Ministry of Energy (SENER) in May 2020.

A ruling issued on December 18, 2020 by the Second Administrative Judge in Administrative Matters Specialized in Economic Competition, Broadcasting, and Telecommunications granted a writ of amparo, which is a remedy for the protection of constitutional rights, to a group of companies represented by Greenberg Traurig, against the Reliability, Safety, Continuity and Quality Policy in the National Electric System issued by SENER on May 15, 2020 ("SENER’s Policy"), declaring it unconstitutional and ordering that it be rendered null and void in its entirety.

Essentially, the Judge considered that SENER's Policy violates the constitutional principles of competition and free concurrence, and that its issuance is vitiated by illegality, since it did not follow the established regulatory improvement procedures.

The judgment was challenged extemporaneously by SENER, and therefore it has become res judicata; meaning that it has become final in its terms, as confirmed by the Second Collegiate Circuit Court in Administrative Matters Specialized in Economic Competition, Broadcasting, and Telecommunications.

The ruling is a landmark precedent in the Mexican legal system. Unlike the Supreme Court's decision in the constitutional controversy 89/2020, all the provisions contained in SENER’s Policy are annulled (as opposed to only some of them). The annulment of SENER’s Policy has general effects, hence all energy sector participants are benefited by this determination.

The Greenberg Traurig team involved in this case included Joselino Morales López (Litigation Shareholder, Mexico), Erick Hernández Gallego (Energy & Natural Resources Shareholder, Mexico), Pedro J. Reséndez Bocanegra (Energy & Natural Resources Of Counsel, Mexico), Hugo E. Hernández García (Litigation Associate, Mexico) and Perla Itzel Salgado Román (Litigation Associate, Mexico).

About Greenberg Traurig Mexico: Greenberg Traurig’s Mexico City office offers clients innovative, strategic advice and legal services that span both traditional fields and contemporary regulatory sectors. The office has more than 60 bilingual attorneys who have been contributors to major national projects in Mexico and leverages the resources and reach of the firm’s global platform to provide clients with tailored legal services reflective of the specific industry and market conditions in which they operate. The Mexico City office is an integral part of the firm’s award-winning Latin America Practice, and has been recognized with leading banking, corporate, M&A, infrastructure, real estate, privacy, energy, administrative litigation, competition, compliance and FinTech practices in Mexico.

About Greenberg Traurig, LLP: Greenberg Traurig, LLP (GT) has approximately 2200 attorneys in 40 locations in the United States, Latin America, Europe, Asia, and the Middle East. GT has been recognized for its philanthropic giving, diversity, and innovation, and is consistently among the largest firms in the U.S. on the Law360 400 and among the Top 20 on the Am Law Global 100. The firm is net carbon neutral with respect to its office energy usage and Mansfield Rule 3.0 Certified. Web: http://www.gtlaw.com

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Elaine Walker
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