Browse Honduras Daily Stories

Economist Fredy Tejada cautioned that Honduras faces obstacles in its sixth IMF agreement review, citing high current spending, budget execution below 50%, unfulfilled commitments to cut public-sector payroll, persistent inflation, and ongoing losses at the state electricity company.

The government froze electricity rates to prevent a 20% surge from power contracts signed by the previous administration, shielding household budgets and the economy while recent rainfall boosts hydroelectric generation.

The STENEE electrical workers' union says the International Monetary Fund's evaluation of Honduras should build on the recent power-sector reform law, which the union argues removed legal barriers to needed institutional investment and allowed ENEE to establish internal oversight and a structured loss-reduction plan.

René Alfaro, a former ENEE administrator, says Honduras's energy reforms have not yet produced tangible results and warns that tying financing to five-year loss-reduction targets lacks technical clarity and could hamper the state power utility's recovery.

Honduras's state power utility will forgive 100% of accumulated electricity debt—including penalties and interest—for low-income residential customers with average monthly consumption up to 250 kWh, under Article 20 of the Energy Justice Law approved in August.

Three weeks after Honduras's new Energy Justice Law took effect, a monitoring report finds only one of 42 required tasks completed, with losses at the state utility ENEE rising to 34.4% and a critical energy auction delayed to early 2027.

Honduras's state electricity utility ENEE has begun forgiving accumulated electric bills, penalties, and interest for low-income residential customers with monthly consumption of 250 kilowatt-hours or less, applying the Energy Justice Law.

An ASJ watchdog report warns that energy losses at Honduras's state power company have risen to 34.4%, a major 1,500-megawatt energy tender already delayed to 2027 risks supply shortages, and the three successor companies can absorb only a fifth of a 143.8-billion-lempira debt.

Honduras's state power utility reduced its arrears to energy generators from over L16 billion to L7.4 billion (about $296 million) through payments exceeding L9 billion since April, while beginning to forgive residential customer debts under a new energy-justice law that could benefit up to 80,000 families.

Honduras's state electric company (Enee) loses approximately L8.8 billion (roughly $352 million) in the first half of 2026 due to theft, technical losses, and billing failures, forcing the government to subsidize tariffs rather than pass costs to consumers.

Honduras's state power utility ENEE, losing an estimated 40 million lempiras daily to illegal connections, meter tampering, and theft, is launching specialized crews nationwide to inspect, install meters, and cut service where electricity theft is found, aiming to recover lost revenue and strengthen its financial position.

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.

Outstanding electricity bills owed to Honduras's state power utility have climbed to L21.1 billion (about $845 million) as of August 31, with residential customers accounting for more than half the debt despite repeated government payment relief programs.

Recent blackouts stem from multiple power plants not yet connected to the grid, a former ENEE manager said, while warning that extreme heat from a climate pattern called Super Niño and potential water shortages next year could worsen the energy crisis unless idle thermal and renewable units are brought online.

President Asfura blamed widespread blackouts and power rationing on peak-hour demand and fuel shortages at generating plants, while announcing that Congress-approved energy reforms await final review before publication and that roughly 1,500 megawatts will be tendered to stabilize the grid.

Honduras is separating ENEE's generation, transmission, and distribution into distinct state-owned companies and creating an independent system and market operator, mirroring reforms other Central American nations completed 20–25 years ago.

Honduras's electric-sector overhaul, which restructures ENEE and addresses transmission infrastructure and technical losses, will take at least two years to meaningfully reduce blackouts while the government executes infrastructure investments and tackles the utility's 120-billion-lempira debt.

President Nasry Asfura highlighted the state electricity utility's financial crisis, citing cumulative losses of 118 billion lempiras (about $4.7 billion) as a central challenge facing the administration.

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 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.

State power utility ENEE accumulated a L11.2 billion (about $450 million) deficit in the first seven months of 2026, with energy theft and illegal connections accounting for roughly 75% of losses, according to a civil-society analysis presented to energy regulators and Congress.

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.

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.

An energy analyst warns Honduras could face an unfavorable International Monetary Fund evaluation because state utility ENEE has failed to meet targets for reducing electricity distribution losses, a goal tied to the country's IMF program.

Honduras's electric regulator (CREE) published a comparative analysis of the electric-sector reform bill showing how negotiations between the President, Congress, and the Liberal Party shifted the final version approved on August 12, with added restrictions on state utility ENEE.

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.