Browse Honduras Daily Stories

The research organization Sendas called for energy-sector reform to be built on political independence, reduced technical losses, financial recovery, greater market competition, and accountable leadership to address ENEE's structural crisis, which cost the utility about $530 million in uncollected revenue during 2025.

Dante Mossi, former president of the Central American Bank for Economic Integration, says the government lacks a public strategy to manage ENEE's $1 billion debt to power generators, a $700 million sovereign bond due in January 2027, and roughly $3 billion in stalled infrastructure projects including roads, dams, and hospitals.

The head of Honduras's business association warns that the state power utility ENEE has 122 billion lempiras ($4.9 billion) in liabilities against 54 billion in assets, and risks having to return to costly diesel generation unless Congress approves new energy legislation and competitive bidding within months.

Finance Secretary Emilio Hernández Hércules said Honduras is proceeding with an open auction of the presidential aircraft and plans to issue up to 16 billion lempiras (about $640 million) in bonds, with proceeds aimed at paying accumulated debts to electricity generators and addressing the state power utility's financial crisis.

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.

The organization Sendas warned that Honduras's planned electricity-sector reform needs a dedicated, autonomous administrator with real decision-making power to implement structural changes, noting that fragmented responsibility across multiple agencies and weak institutional continuity have hindered past efforts.

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.

The private-sector business council estimates that power outages—averaging 21,200 hours of unmet demand annually—cost Honduras about L1.2 billion (roughly $48 million) per year in lost productivity, equipment damage, and generator expenses, while the government pushes stalled reforms to strengthen the state electricity utility.

A think tank says Honduras's state power utility loses about 15 billion lempiras (roughly $600 million) a year, blamed on political interference rather than operational needs, as Congress debates an overhaul bill opposed by some lawmakers who fear weakening the company's market role.

Economist Amparo Canales warns that rising electricity rates risk setting off cascading inflation and further increasing the cost of living for Hondurans.

Amparo Canales, former president of Honduras's College of Economists, says energy reforms will require foreign investment and must avoid politicization, while improving the state power company ENEE's efficiency and protecting its assets from privatization.

Consumer advocates project that adjustments to electricity tariffs will increase the price of Honduras's basic food basket by about 800 lempiras (roughly $32).

Economist and former congressman Aníbal Cálix said public investment moved too slowly in the first half of 2026 and called for structural reforms at ENEE, the state power utility, to improve its financial performance and grid reliability.

Former Energy Secretary Erick Tejada says Honduras's state power company needs eight years to recover from deep structural problems, and warns that the government's no-subsidy policy is pushing electricity rate increases onto ordinary Hondurans.

ENEE manager Guillermo Peña Panting disclosed that the state electric utility's largest debtor is the government and its institutions, which owe approximately L14 billion of the utility's L18 billion in total accounts receivable.

Honduras's state utility ENEE increased residential, commercial, and industrial electricity rates by 12.48% effective July 1 through September 30, raising monthly bills by roughly that percentage across all customer segments.

The International Monetary Fund is tracking Honduras's efforts to reform its electric sector, with pending actions still needed to address problems at the state-owned utility ENEE.

An energy analyst at the ASJ warns that Honduras's next power-rate adjustment could increase due to rising fuel prices and the country's heavy reliance on fossil-fuel generation, citing a lack of competitive bidding that has forced ENEE to rely on costly spot-market contracts.

The International Monetary Fund's board approved Honduras's fourth and fifth program reviews, unlocking a $242 million disbursement and bringing total IMF funding to $725 million of a $847 million package, though the IMF flagged missed targets on electrical utility arrears and urged faster energy-sector reform.

Alexander Godoy, a STENEE union representative, says a review of Honduras's electricity subsidy aims to ensure benefits reach only low-income families while eliminating aid to vacation homes and vacant properties, allowing state utility ENEE to strengthen its finances and reduce costs.

Leonardo Deras, a commissioner at electricity regulator CREE, warned that state utility ENEE is losing 1.3 billion lempiras (about $52 million) a month and that, without action, losses could reach 150,000 million lempiras (about $6 billion) in coming years.

Edgar Aguilar, an energy analyst at the ASJ (Foundation for the Study of Applied Law), says the National Congress's failure to advance an energy reform bill poses a direct fiscal risk to Honduras as the state utility ENEE continues to post multimillion-lempira losses.

Finance Vice Minister Lilian Rivera said international lending institutions' backing for state utility ENEE reforms could create opportunities for future financing to strengthen and modernize Honduras's power sector.

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.

Roberto Lagos, president of Honduras's central bank, says failure to approve an energy sector reform will perpetuate ENEE's structural problems, mounting debt, and operational losses, and has secured backing from international multilateral organizations.

Samuel Rodríguez, a renewable energy generator, said electricity rates are due for adjustment because high fuel prices driven by the US-Iran conflict are raising energy production costs.

Honduras's state power utility ENEE requires L35.4 billion (roughly $1.4 billion USD) in domestic debt from 2026 to 2029 to cover payments to private generators, amid losses exceeding 34% and a total debt burden now at L73.3 billion.

The head of the Cortés Chamber of Commerce warned that a new increase to electricity rates will reduce competitiveness in the industrial region.

Carlos Hernández, director of the advocacy group ASJ, warns that the state power utility ENEE has received 46 billion lempiras over four years while carrying a debt exceeding 100 billion lempiras, and continues to suffer from high losses, unfocused subsidies, and electricity theft.

A banking and finance expert says reforming Honduras's electric system could help recover over 16 billion lempiras ($640 million) in losses and reduce the fiscal burden on the national power company, which has weakened since 1990.