Browse Honduras Daily Stories

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.

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 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.

Honduras's electricity regulator warns that Congress-approved reforms to the power sector remain unsigned and unpublished, delaying their implementation even as daily blackouts persist due to insufficient generation capacity.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

Central Bank President Roberto Lagos said Honduras holds $11.5 billion in international reserves—enough to cover 6.7 months of imports—and projects 3.5% economic growth this year, though he cautioned that energy-sector reforms are needed to attract investment and push growth above 4%.

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.