Browse Honduras Daily Stories

Honduras's new Energy Justice Law temporarily freezes ENEE electricity rates for six months, allows eligible low-income households to seek forgiveness of accumulated debts up to 250 kWh monthly consumption, and creates tax breaks for residential solar-panel systems.

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.

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.

Economist Amparo Canales welcomed fuel price reductions as temporary relief but stressed that savings must translate into lower consumer prices broadly, urging authorities to monitor for pricing abuses.

Honduras is preparing an international tender for 1,500 megawatts of firm capacity using liquefied natural gas, aiming to diversify its energy matrix and add capacity needed to meet growing demand over the next decade.

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.

CREE commissioner Héctor Corrales said the agency's review of electricity tariffs reflects upward pressure from rising fuel prices, exchange-rate shifts, and increased energy demand.

New weekly fuel prices take effect Monday, with super gasoline and diesel dropping in both Tegucigalpa and San Pedro Sula, while regular gasoline and domestic LPG rise slightly, according to the Energy Secretariat.

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.