Rate Freeze

Honduras's energy regulator approved a 0.64% average rate increase for state utility ENEE users effective October 1, but a legal rate freeze prevents the increase from appearing on bills; the government will absorb the deferred costs.

Honduras's electricity regulator approved a 0.64% rate increase for the fourth quarter of 2026, but the newly enacted Energy Justice Law blocks ENEE from passing the increase to consumers, keeping electricity bills frozen through March 2027.

Congress Energy Commission member Eder Mejía said the government's electric-sector reforms, which would forgive debts for users consuming under 200 kWh monthly, freeze rates for six months, and regularize illegal connections, are expected to be published in the official gazette next week.

Honduras's planned energy reform faces delays as the government struggles to find resources to cover the cost of freezing electricity rates for six months, raising questions about who will ultimately bear the financial burden.

ENEE's 400-megawatt diesel-lease contract, signed under former management, requires the state utility to buy fuel at over $100 per barrel, driving generation costs above 45 cents per kilowatt-hour and forcing rolling blackouts that a partial rate freeze cannot offset.

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.