Browse Honduras Daily Stories

Honduras's newly approved Energy Justice Law, passed by Congress on August 31 with 78 votes, has not yet been published in the official gazette and cannot take effect until the President signs or vetoes it; business groups say swift implementation is critical to address the country's electricity crisis.

Thomas R. Hardy, operations director of the U.S. Trade and Development Agency, said energy-sector reform and infrastructure projects linking Honduras's Atlantic and Pacific coasts are essential to drawing American investment and strengthening the country's economy.

The electricity regulator warns Honduras risks power rationing next year unless it rapidly adds new generation capacity through competitive bidding, which it says—not tax breaks—will lower energy costs.

Cohep, Honduras's main private-sector organization, rejected any involvement in a National Congress member Adolfo Ráquel's electricity-sector reform proposal, saying it has not reviewed or endorsed the initiative and will not be held responsible for its technical, legal, or financial implications.

Honduras's Energy Ministry says 378,920 homes — about 15% of the country — lack electricity, with rural areas most affected and infrastructure investment needed to close the gap.

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.

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.

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.