Honduras energy reform sparks debate over ENEE privatization

Honduras is facing intense political debate regarding proposed energy reforms aimed at restructuring the national electricity sector and rescuing the Empresa Nacional de Energía Eléctrica (ENEE).

Political factions are divided over the direction of the reform. The ruling government and its supporters advocate for a new Electricity and Renewable Energy Law to diversify the energy matrix and reduce dependence on natural gas through private investment. Conversely, the Libertad y Refundación (Libre) party has accused the Liberal and National parties of attempting a “disguised privatization” that could weaken the ENEE and increase costs for citizens.

The Liberal Party has signaled a potential consensus with the National Party, intending to present a counterproposal that ensures the ENEE remains a fully state-owned entity. They aim to avoid models that could facilitate the transfer of state assets to private hands. Meanwhile, labor unions and some legislators are calling for political consensus to prioritize the country's financial and operational stability over partisan differences.