Honduras Congress nears final debate on energy sector reforms

The National Congress of Honduras is preparing for a decisive third debate on energy sector reforms, which could take place as early as next Tuesday. Congressional President Tomás Zambrano stated that legislative blocs have reached a consensus on several key points, including proposals from the Liberal Party, to modernize the Electricity Industry Law.

The reform aims to address critical issues facing the Empresa Nacional de Energía Eléctrica (ENEE), which currently faces annual losses exceeding 16 billion lempiras. Proposed structural changes include dividing the ENEE into three separate entities for generation, transmission, and distribution, as well as strengthening the Electricity Regulatory Commission (CREE).

However, debate continues regarding specific provisions, such as tax benefits for renewable energy generators and a proposed amnesty for municipalities with outstanding debts to the ENEE. Business leaders, including Cohep's Armando Urtecho, have urged lawmakers to ensure the reforms are technically sound and provide legal certainty to attract investment. ENEE manager Guillermo Peña Panting warned that delays could discourage investment and increase the cost of future energy tenders.