Energy Reform

The U.S. State Department said it welcomes Honduras's passage of the Energy Justice Law, noting that American companies are interested in investing in the country's energy sector to improve reliability and create jobs.

The electrical regulator (CREE) is expected to approve a 17% rate increase on September 30, but a six-month rate freeze and state subsidies enacted by Congress will prevent the increase from reaching residential and vulnerable consumers.

Honduras suffers over 165 hours of blackouts yearly—versus fewer than 9 in El Salvador—costing businesses more than $100 million annually, and analysts warn the new Energy Justice Law's impact depends on institutional capacity to implement it.

Former president Manuel Zelaya criticized Congress's approval of an energy-reform law as a surrender of state control to private corporations, arguing it exemplifies how élites and external political pressure undermine Honduran democracy.

Thomas R. Hardy, operations director of the U.S. Trade and Development Agency, said energy-sector reform and infrastructure projects linking Honduras's Atlantic and Pacific coasts are essential to drawing American investment and strengthening the country's economy.

The electricity regulator warns Honduras risks power rationing next year unless it rapidly adds new generation capacity through competitive bidding, which it says—not tax breaks—will lower energy costs.

The president of Congress announced that lawmakers will resume debate on controversial reforms to Honduras's electricity sector on Tuesday, with party caucuses still negotiating points of disagreement ahead of the planned third and final vote.

The National Congress is poised to vote on an energy-reform bill next week after reaching broad consensus among parties, while preparing to review the 2027 budget with emphasis on food security and drought relief.

Congress President Tomás Zambrano gave the opposition Liberal Party 15 days to present a counter-proposal on energy reforms for state utility ENEE, warning that without agreement the executive could pursue alternative measures including a presidential decree.

Cohep president Anabel Gallardo called on Congress to pass the long-delayed energy law reform, warning that continued inaction weakens ENEE's governance and could deter investment.

Cohep's president warned that technical losses, theft, and illegal power tapping in the national grid represent resources that could be redirected to health, education, and infrastructure, and called for Congress to approve an energy-law overhaul to strengthen state utility Enee.

Honduras's energy reforms remain blocked in Congress due to disagreements between the ruling Libre and opposition Liberal parties, prompting a nationalist deputy to suggest the president may bypass the legislature by using ministerial council decisions.

Honduras ranks third in Central America for residential electricity costs at $0.236 per kilowatt-hour, but economists say the true cost to users and public finances is far higher due to losses at the state utility Enee, debt servicing, and an incomplete energy-sector reform.

The Partido Nacional said it would back the Liberal Party's competing energy-sector bill if it gains legislative consensus, citing insufficient votes for its own proposal and the urgency of approving public contracts to lower electricity costs for consumers.

Cohep, Honduras's main private-sector organization, rejected any involvement in a National Congress member Adolfo Ráquel's electricity-sector reform proposal, saying it has not reviewed or endorsed the initiative and will not be held responsible for its technical, legal, or financial implications.

President Nasry Asfura called on Congress to approve energy-sector reforms aimed at reducing financial losses at the state-run electricity utility ENEE.

ASJ, a civil-society organization, urges Congress to focus energy-sector reform solely on overhauling the state power utility ENEE to improve efficiency, reduce blackouts, and lower costs for poor households.

The National Congress has delayed debate on an energy-reform bill at the executive branch's request, deferring discussion until further notice to allow time for consensus-building.

Congressman Yuri Sabas criticized the government's energy-reform bill for lacking substantive changes, warning that ENEE could become as hollowed-out as the failed state telecom Hondutel despite holding valuable assets like major dams.

More than half of the Liberal Party's congressional members oppose energy-sector reforms being pushed by the party's legislative leader, Jorge Cálix, with lawmakers citing concerns that the proposal lacks popular support and needs deeper analysis.

The Liberal Party caucus presented a counterproposal to the government's energy-reform law, saying it includes legal safeguards and structural guarantees to benefit Hondurans while preventing what lawmakers call privatization risks to state utility ENEE.

Liberal and National Party lawmakers said they are close to agreement on energy reforms to modernize the electric system and rescue the troubled state utility ENEE, with key protections for public assets including hydroelectric dams.

Honduras is considering opening its electricity market to multiple operators in generation, distribution, transmission, and sales—similar to Costa Rica's hybrid system—to boost investment, diversify energy sources, and increase regional competition.

President Asfura said new energy legislation would allow large businesses and industries to negotiate power purchases directly with generators rather than rely solely on state supply, aiming to lower costs and attract investment.

Congress President Tomás Zambrano declared that privatization of the national electricity company ENEE is entirely off the table, saying proposed reforms to energy law aim instead to stabilize the utility's finances and resolve the country's power crisis.

Lawmakers are negotiating a bill to rescue the troubled state electrical utility ENEE and modernize its aging infrastructure, with Congress leadership saying a formal vote could come this week or next.

Congress President Tomás Zambrano called on the Liberal Party to submit its observations on a proposed reform to Honduras's electricity law, framing the modernization of the troubled state utility ENEE as urgent for all Hondurans, not just the governing party.

Honduras's Energy Ministry says 378,920 homes — about 15% of the country — lack electricity, with rural areas most affected and infrastructure investment needed to close the gap.

Congress President Tomás Zambrano announced that lawmakers have reached consensus on electricity-industry reforms and may hold a final vote next Tuesday, citing annual losses exceeding 16 billion lempiras at the state utility and chronic blackouts affecting Honduras more severely than neighboring countries.

Lawmakers remain divided on proposed reforms to Honduras's state electric utility, with some demanding modifications or deletions to specific articles and disagreement over whether modernization requires privatization.