Browse Honduras Daily Stories

The union representing ENEE employees opposes splitting the state utility into three private companies and proposes instead an internal reorganization by distribution, operation, transmission, and generation aimed at reducing losses while keeping the utility public.

The Honduran business chamber (CIMEQH) called for a halt to a proposed electric-sector reform, citing risks that the legislation could drive up utility rates and lead to privatization of public power assets.

Congress is moving toward approving a structural reform that would divide the state-owned ENEE into three separate commercial entities for generation, transmission, and distribution, with energy experts warning the changes open a path to privatization and could weaken the utility's financial stability.

A proposal by the current director of Honduras's state electricity utility to reorganize its structure into three separate companies and create an independent grid operator would undermine state control and pave the way for privatization, according to former ENEE manager Erick Tejada.

President Nasry Asfura said his administration will not privatize the state power utility ENEE but will pursue efficiency reforms and modernization to address the company's mounting losses, which he called Honduras's main economic problem.

Congress is prepared to review the executive's proposal to restructure the state electricity utility ENEE to reduce its 38% loss rate—which costs the state approximately L1.3 billion monthly—and lower electricity costs for consumers.

Congress is advancing a reform of Honduras's electricity sector that would reduce technical and non-technical losses—now running at 38% of the system, or about 1.3 billion lempiras monthly—and strengthen regulatory oversight to improve efficiency and financial sustainability.

President Nasry Asfura outlined a broad set of government measures including a nationwide smart-meter rollout to cut ENEE losses, debt-relief legislation for electricity customers, drought aid for up to 90 municipalities, higher municipal transfers, and over L 1.1 billion (roughly $44 million) in flood-mitigation works.

President Asfura introduced a bill to modernize ENEE, Honduras's state electric company, through operational restructuring aimed at recovering more than 16 billion lempiras annually in system losses that could be redirected to health, education, roads, and social programs.

A draft law sent to Congress would restructure Honduras's electric system by splitting state utility ENEE into a holding company, creating an independent system operator, and opening the market to new generators and retailers, with experts projecting potential savings of $3.6 billion.

The government will submit a comprehensive electricity-sector reform bill to Congress this week that would split ENEE into three functional divisions—generation, transmission, and distribution—aiming to cut system losses of nearly 38% and stabilize tariffs, officials say.

At a press conference, President Nasry Asfura said his administration is working to cut losses at the state power utility ENEE, while revealing that the US government is funding a feasibility study for an interoceanic corridor and dry port between Puerto Cortés and La Barca.