Browse Honduras Daily Stories

Lawmakers approved the Energy Justice Law on final vote with 78 votes, restructuring the state electric utility ENEE through legal reforms to the sector's framework while keeping it publicly owned.

Lawmakers are intensifying negotiations to break a months-long deadlock over reforms to Honduras's electric power system, with legislators aiming to bring the bill to a final vote this week after incorporating opposition demands to protect state assets and reduce consumer costs.

Negotiations over a sweeping overhaul of Honduras's electricity system have hit a standstill in Congress after the Liberal Party created additional review committees, delaying a final committee report and blocking a floor vote despite weeks of technical work with private generators and international experts.

Mayors and lawmakers aligned with the Liberal Party are preparing an alternative energy proposal that would keep the national power utility ENEE under state control, combat electricity theft and meter fraud (cited as over 90% of losses), and renegotiate rates with private generators.

Honduras's Energy Commission is reviewing a Liberal Party counterproposal for restructuring the state electric utility into three operating subsidiaries, aiming to attract private capital for modernization while keeping state ownership of major generation and transmission assets.

Congress plans to vote next week on restructuring the state electricity company to stem annual losses exceeding 16 billion lempiras (about $640 million), but passage depends on the Liberal Party's backing and its proposed reverse-auction mechanism for energy procurement.

Congress suspended debate on a proposed energy modernization law after the Liberal Party and social sectors demanded more time and transparency, citing concerns over potential rate increases and the future of the state electricity company ENEE.

Vice President of Congress Godofredo Fajardo introduced a bill to block a 12.82% electricity rate increase announced by the energy regulator, keeping the price at 5.32 lempiras per kilowatt-hour instead of allowing it to rise to 5.98 lempiras, citing the burden on household budgets and business costs.

The Liberal Party declared support for reforming the national electricity utility ENEE but demanded that strategic state assets, including the El Cajón hydroelectric dam, be protected from any privatization as part of the overhaul.

At least 10 members of the Liberal Party in Congress oppose proposed counterreforms to the state power utility ENEE, signaling internal party division on energy policy.