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[POLITICS] · Honduras · 15 sources

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Honduras Congress approves Energy Justice Act to restructure ENEE

The Honduras National Congress has approved the Energy Justice Act, a major legislative reform aimed at restructuring the state-owned National Electric Energy Company (ENEE). The law seeks to address the utility's severe financial crisis, which includes daily losses of approximately $1.9 million. Under the new framework, the ENEE will be reorganized into a parent company with three state-owned subsidiaries responsible for generation, transmission, and distribution.

While the legislation explicitly maintains the public character of the ENEE and excludes it from privatization, the reform has faced political opposition. Some legislators have criticized the move as a potential risk to national sovereignty and a step toward privatization. Conversely, the private sector, represented by the Consejo Hondureño de la Empresa Privada (COHEP), has welcomed the reform as a necessary step but warned that its success depends on effective implementation, improved service reliability, and transparency in market regulation.

The reform also includes a provision to freeze electricity tariffs for six months. The Commission for the Regulation of Electric Energy (CREE) estimates that the full effects of these structural changes on energy prices may not be visible for approximately 18 months. International organizations, including the CAF, have expressed support for the reform, offering technical cooperation to assist in its implementation.

Entities

Commission for the Regulation of Electric Energy · Congreso Nacional de Honduras · Consejo Hondureño de la Empresa Privada · Empresa Nacional de Energía Eléctrica · Guillermo Peña Panting · Honduras · Honduras Congress · Honduras National Congress · Nasry Asfura · National Congress of Honduras · National Electric Energy Company · Thomas R. Hardy

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