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Congress opened a first reading of an 18-article bill to reorganize Honduras's electrical system, with stated aims to lower costs, improve service, reduce blackouts, and keep state utility ENEE in public hands.

Energy analyst Salomón Ordóñez says Honduras's state power utility requires roughly L50 billion (about $2 billion) to upgrade distribution and transmission infrastructure, with private investment possible once electrical-sector reforms are approved.

Salomón Ordóñez, the former head of state utility ENEE, says Honduras faces losing competitiveness in Central America unless it tackles two decades of governance failures in its electricity system, citing Guatemala and El Salvador's successful power-sector overhauls.

ENEE manager Guillermo Peña Panting said a bill to reform Honduras's electricity system is in advanced legislative stages and aims to attract private investment in generation, transmission, and distribution to address chronic blackouts and improve service reliability.

A Congressional energy commission is drafting reforms to modernize the state-owned power utility ENEE through internal reorganization of transmission, distribution, and billing operations, while ruling out privatization and pledging to protect worker job security.

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.

Congress began debate on sweeping reforms to Honduras's electric utility ENEE, aiming to reshape its corporate structure and finances to address the state company's L50 million daily fiscal deficit before lawmakers begin mid-year recess.

The state utility's financial manager said ENEE has a strategy to meet near-term obligations and restructure its debt, and that pending energy reforms will boost confidence among lenders and potential investors.

The Libre party's congressional bloc has proposed a popular consultation to let Hondurans decide the future direction of ENEE, the state electrical utility.

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.

A dispute over overlapping duties between the interim technical chief and the administrative director at Honduras's largest hydroelectric plant, El Cajón, is stalling procurement of vital parts needed to keep all four turbines running, according to internal communications obtained by El Heraldo.

The European Union's ambassador to Honduras endorsed proposed reforms to the country's electric industry law, saying the model mirrors European approaches and would improve service while lowering tariffs through renewable-energy incentives.

The World Bank, IDB, CAF, and BCIE have endorsed the government's plan to split the state electricity company into three entities for generation, transmission, and distribution, but critics warn it masks privatization and demand broader public consultation.

ENEE announced planned power cuts on June 16 across multiple zones for scheduled maintenance and infrastructure work.

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.

Honduras's state power utility is issuing bonds in the national financial system to raise liquidity and settle accumulated debts to electricity generators, officials say, aiming to ensure uninterrupted power supply.

Former energy official Guillermo Peña Panting warns that Honduras faces potential loss in international arbitrations filed by electricity-sector investors at the ICSID, citing the current administration's reforms to contracts signed under prior legal frameworks.

Finance Minister Emilio Hércules clarified that a proposed law on the state-owned electricity utility ENEE would keep 100% of the three linked companies under government ownership, with any decisions requiring Congressional approval.

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.

The Honduran Association of Electricity Producers warns that structural inefficiencies—including theft, non-payment, and infrastructure losses—are forcing citizens to bear rising costs, and urges competitive market reforms to improve service and lower prices.

The national utility ENEE will cut power to various areas of Honduras on Saturday, June 13, for scheduled grid maintenance and upgrades, with outages lasting up to six hours in affected zones.

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 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.

Honduras's business council endorsed the government's proposed energy reforms but called for stronger legal protections, independent regulators, and a phased breakup of the state utility ENEE to reduce technical losses and attract investment.

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.

Marco Antonio Flores, an energy researcher at UNAH, says combating electricity theft in areas with widespread illegal connections is crucial to rescuing the struggling state power utility ENEE.

The ENEE's financial manager said new transmission infrastructure projects will be funded through private investment drawn by sector openness, not public debt alone, to accelerate Honduras's energy development.

The opposition LIBRE party faction says the government's draft energy reform is privatization disguised as modernization and is calling for a popular referendum, arguing that Hondurans—not lawmakers or private interests—should decide the future of the state-owned utility ENEE.

Milton Puerto, president of Congress's Energy Commission, says private companies will be barred from using assets of the state electricity utility ENEE as collateral when seeking investment loans.

The national power utility announced scheduled maintenance and emergency repairs Friday, June 12, affecting neighborhoods across Tegucigalpa, Comayagüela, and the north coast during different hours, including the National Stadium and major commercial zones.