Energy Crisis

Honduras's National Institute of Statistics clarified that photographing electricity meters during the 2026 national census is optional, not mandatory, after public concerns that the practice could be used to justify rate increases during an energy crisis.

Anabel Gallardo, president of Honduras's business council (Cohep), warned that chronic electricity shortages and lack of legal certainty continue to discourage foreign investment and job creation in the country.

ENEE announced rolling blackouts on the island of Guanaja from August 7 to 20 to manage a 450 kW power shortage caused by failed generators and solar system deficiencies affecting over 2,000 users, while the utility arranges an additional generator to restore supply.

Diesel prices have surged 69.8% since January to L141.67 per gallon and premium gasoline 49.6%, with another increase taking effect August 3 that economists warn will drive up transport and food costs.

The Liberal Party congressional bloc will present next week an alternative proposal to reform Honduras's electric-industry law, conditioning their support on incorporating their technical observations drawn from successful regional models in Panama, El Salvador, Guatemala, and Costa Rica.

President Nasry Asfura called on lawmakers to pass reforms to the Electricity Sector Law to address the state power utility ENEE's monthly losses of approximately 1.2 billion lempiras (about $48 million), which he said strain the government's capacity to fund health, education, and infrastructure.

An economist at Honduras's national university says the state power utility's financial crisis, unresolved across multiple administrations, risks becoming unsalvageable if deterioration continues.

Frequent blackouts across Honduras are causing daily losses to small and medium-sized businesses, with some municipalities reporting up to 14 outages daily and Congress stalled on energy reforms.

About 400,000 subscribers of Honduras's state electricity company ENEE owe more than L12.5 billion (roughly $500 million) in unpaid bills, according to the utility.

Hospital Atlántida in La Ceiba is experiencing dangerous power outages during surgeries because its backup generator is broken, leaving operating rooms dark during procedures.

Honduras's largest power plant, El Cajón, which supplies about 30% of the nation's electricity, is at risk of forced shutdowns due to aging equipment past its useful life and delays in purchasing critical replacement parts, engineers warn.

ENEE manager Guillermo Peña cited insufficient investment and maintenance of the electricity grid as the root cause of Honduras's recurring power outages.

Honduras's private sector says chronic blackouts cause direct losses exceeding 1.2 billion lempiras (about $48 million) per year in lost production, calling for structural energy reforms rather than temporary fixes.

President Nasry Asfura declared the state power company's financial losses and accumulated debt the country's chief economic concern, pledging to stabilize operations while keeping it publicly owned and freeing resources for health, education, and infrastructure.

The Honduran Association of Electricity Producers warns that structural inefficiencies—including theft, non-payment, and infrastructure losses—are forcing citizens to bear rising costs, and urges competitive market reforms to improve service and lower prices.

Frequent blackouts are crippling Honduras's micro, small, and medium-sized enterprises, with the sector reporting estimated daily losses of 15 million lempiras (about $600,000) as outages lasting up to six hours halt production and sales.

Business leaders warn that persistent inflation and rising energy costs remain the top concerns for Honduras's economy, with April's year-over-year inflation reaching 5.56% and Middle East instability driving up fuel prices.

The vice president of the Tegucigalpa Chamber of Commerce warned that while Honduras has made macroeconomic progress, inflation, insecurity, unemployment, and extortion continue to prevent those gains from improving living standards for ordinary Hondurans.