Browse Honduras Daily Stories

Honduras's electric-sector overhaul, which restructures ENEE and addresses transmission infrastructure and technical losses, will take at least two years to meaningfully reduce blackouts while the government executes infrastructure investments and tackles the utility's 120-billion-lempira debt.

State power utility ENEE accumulated a L11.2 billion (about $450 million) deficit in the first seven months of 2026, with energy theft and illegal connections accounting for roughly 75% of losses, according to a civil-society analysis presented to energy regulators and Congress.

State institutions have accumulated over 20 billion lempiras (roughly $800 million) in unpaid electricity bills to ENEE, with much of the debt dating back more than 15 years; the utility is auditing its accounts receivable and also grappling with 34% energy losses due partly to theft.

The Association of Petroleum Product Distributors (Ahdippe) called on lawmakers to more carefully analyze energy-system reform proposals, citing concerns about technical losses, ENEE debt recovery, and accountability before the bill advances.

Dante Mossi, former president of the Central American Bank for Economic Integration, says the government lacks a public strategy to manage ENEE's $1 billion debt to power generators, a $700 million sovereign bond due in January 2027, and roughly $3 billion in stalled infrastructure projects including roads, dams, and hospitals.

The organization Sendas warned that Honduras's planned electricity-sector reform needs a dedicated, autonomous administrator with real decision-making power to implement structural changes, noting that fragmented responsibility across multiple agencies and weak institutional continuity have hindered past efforts.

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.

The International Monetary Fund's board approved Honduras's fourth and fifth program reviews, unlocking a $242 million disbursement and bringing total IMF funding to $725 million of a $847 million package, though the IMF flagged missed targets on electrical utility arrears and urged faster energy-sector reform.

Honduras's human-rights committee supports the government's electricity reforms but is pressing for legal guarantees that the state-owned national power utility will not be privatized and that benefits reach all sectors, as Congress prepares to vote on the overhaul this week.

A study by the Honduran private-sector council found that blackouts and electrical interruptions cost businesses approximately L1.2 billion (about $48 million) a year, with small firms hit hardest, as the government pushes energy-sector reforms.

The Tegucigalpa Chamber of Commerce called for structural reforms to Honduras's electricity system, saying chronic outages and service failures at the state utility ENEE are harming businesses and threatening the country's competitiveness.

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 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.

Business leaders warn that persistent inflation and rising energy costs remain the top concerns for Honduras's economy, with April's year-over-year inflation reaching 5.56% and Middle East instability driving up fuel prices.