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President Nasry Asfura signed the Law of Energy Justice, which restructures the state power utility ENEE by separating generation, transmission, and distribution into three subsidiary companies while maintaining state ownership, aimed at reducing losses and improving electricity service.

Dozens of Hondurans carrying torches and signs marched peacefully to Casa Presidencial on Friday demanding government action on the country's water shortage and opposing recent energy reforms approved by Congress.

The U.S. State Department said it welcomes Honduras's passage of the Energy Justice Law, noting that American companies are interested in investing in the country's energy sector to improve reliability and create jobs.

Cohep president Anabel Gallardo called on Congress to pass the long-delayed energy law reform, warning that continued inaction weakens ENEE's governance and could deter investment.

The state power utility reports daily losses of L40 million (about $1.6 million) while Congress delays approval of an energy law overhaul that officials say is needed to improve efficiency, attract investment, and reduce the company's mounting debt.

Ronald Panchamé, head of the Libre congressional bloc, announced the party will present a counterproposal to the government's electric-sector reform bill currently under discussion.

The opposition Liberal Party says it will back planned overhaul of Honduras's electric sector only if the government explicitly guarantees that the state-owned ENEE will not be privatized and public assets will not be pledged as collateral.

The World Bank recommended splitting Honduras's state power utility ENEE into three separate units for generation, transmission, and distribution in 2007, but the government did not act; losses have since grown from 25% to 38% of revenue, and experts say the breakup is now urgent.

President Asfura introduced a bill to modernize ENEE, Honduras's state electric company, through operational restructuring aimed at recovering more than 16 billion lempiras annually in system losses that could be redirected to health, education, roads, and social programs.