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Power outages worsen in Honduras as businesses demand urgent energy reform approval

From Proceso Digital · () Spanish

Translated from Spanish, summarized and contextualized by DistantNews.

At a glance

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  • Honduran businesses are demanding that the National Congress approve energy reforms to improve the state-owned electric company, ENEE.
  • Constant and prolonged power outages are causing significant losses for micro, small, and medium-sized enterprises, leading to business closures.
  • Despite national and international support for reforms that would liberalize the market and restructure ENEE, political consensus is lacking, delaying a vote until after legislative recess.

Honduran businesses are urging the National Congress to prioritize and approve energy reforms, citing the worsening power outage crisis that is crippling small and medium-sized enterprises. Business leaders and citizens are calling on lawmakers to suspend their mid-year recess and pass legislation aimed at improving the state-run electric company, ENEE.

the instability of the service has caused the closure of thousands of businesses that had previously been recovered.

— Victorino CarranzaVictorino Carranza, a leader of Mipymes, described the impact of the power outages on small businesses.

The frequent and lengthy power interruptions have become a critical issue, particularly for micro, small, and medium-sized businesses. These outages not only halt production but also damage expensive equipment. According to Victorino Carranza, a leader of Mipymes, approximately three thousand micro-enterprises have ceased operations since February 3 due to these unpredictable blackouts and an intermittent distribution system.

Proponents argue that the proposed reforms would liberalize the energy market and set ENEE on a path to recovery. The state company reportedly incurs daily losses of around 50 million lempiras, with a 38% deficit. The reforms would split ENEE into generation, transmission, and distribution sectors, addressing the core issues within the distribution network.

three thousand micro-enterprises have closed operations since February 3 due to the unforeseen power outages and an intermittent distribution system that halts production and damages equipment.

— Victorino CarranzaVictorino Carranza, a leader of Mipymes, detailed the number of businesses that have shut down because of the energy crisis.

These reforms have garnered broad support from various Honduran sectors, including civil society organizations and the private sector. International bodies such as the International Monetary Fund (IMF), World Bank, Inter-American Development Bank (IDB), and the Andean Development Corporation (CAF), along with the U.S. government, have also expressed favorable opinions. However, political divisions within the National Congress have stalled the crucial third debate and vote, with lawmakers opting to postpone it until July, after their recess.

postpone the pe

— Efraín RodríguezEfraín Rodríguez, representative of the National Association of Small and Medium Industry of Honduras (ANMPIH), asked the deputies of the National Congress to postpone the legislative recess.
DistantNews Editorial

Originally published by Proceso Digital in Spanish. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.

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