DistantNews
Support us
🇭🇳 Honduras /Elections & Politics

Honduras Risks Power Rationing in 2027 Without Reform and New Tenders, Regulator Warns

From Proceso Digital · () Spanish

Translated from Spanish and summarized by DistantNews. Read the original for the full story.

At a glance

News Named sources Ongoing story
  • Honduras faces a risk of electricity rationing in 2027 if it does not add generation capacity and complete new tenders on time.
  • Energy regulator Héctor Corrales said proposed reforms should preserve technological neutrality, competition, consumer protection and zero hidden costs.
  • He cited monthly losses of about 1.3 billion lempiras at state utility ENEE from unbilled electricity and warned that drought is threatening hydropower generation.

Honduras could face electricity rationing in 2027 if new generation capacity does not come online and supply tenders are not completed in time, Energy Regulatory Commission commissioner Héctor Corrales warned.

Corrales spoke as lawmakers prepared to resume discussion of reforms to the electricity system. He said progress had been made toward bringing the proposal back to Congress after agreements between the executive branch and the Liberal Party. He described the Liberal Party’s new proposals, based on what had been stated publicly, as broadly acceptable and said they would not substantially alter agreements reached on Aug. 12.

The regulator said any reform should retain four principles: technological neutrality, maximum competition, protection for customers from unnecessary tariff increases and no hidden costs for consumers. He also rejected the idea that incentives or tax exemptions for generators would by themselves reduce electricity prices. In his view, competitive contracting processes would determine prices.

They are the most important principles of the law and of what we have been discussing.

— Héctor CorralesCorrales referred to the four principles he said the reform must preserve.

Corrales acknowledged that generators had requested possible exemptions and incentives during lobbying over the reform. He said any such measures would need to align with national energy policy and have budgetary support.

He also pointed to the financial pressure on the National Electric Energy Company, known as ENEE. Estimates made during the International Monetary Fund’s first mission placed the state utility’s losses from unbilled electricity at about 1.3 billion lempiras a month, or 15.6 billion lempiras a year.

Drought presents another risk. Reservoir levels remain low because of limited rainfall, and Corrales said they must recover during the current season to secure hydropower availability next year. If they remain low, Honduras will need to replace that generation with other technologies.

It is not incentives that lower energy prices, it is competitive tenders.

— Héctor CorralesThe CREE commissioner argued that competition, rather than generator incentives, should reduce electricity costs.
About this summary

Originally published by Proceso Digital in Spanish. Translated, summarized, and contextualized automatically by DistantNews, with a note on how the source frames the story. Not individually reviewed before publishing. How this works.

More Stories

From Our Blog