The private sector is once again insisting on eliminating the monopoly on the generation and distribution of energy, instead of bailing out the state run power company, making rates more expensive.
Although the process to recapitalize the National Electricity Company (ENEE) is in progress, the recent increase in electricity rates has once again put on the table the discussion on the need to ensure competition in the domestic electricity market.
The Solis administration is opposed to the Power Contingency Act which would enable private power generation and force the state run power company to compete.
Arguing that there is no need for it because 'demand is being met," the executive branch is opposing the Contingency Power Act because" ... it would be contrary to the model of energy development in the country, contrary to what has been discussed in the discussion tables on energy."
The guild is demanding the government to open up the market in order to allow companies to buy energy from abroad and reduce dependence on state power supplies.
The private sector is seeking to solve the energy crisis in Honduras by asking for regulation to be made flexible in order to allow direct import of energy for companies.
Emin Jorge Abufele, president of the Chamber of Commerce and Industry of Cortés (CCIC), told Laprensa.hn: "...
Legal jargon on public corporations is preventing twelve companies from choosing the energy supplier that offers the best prices.
Bridgestone, Grupo Mit, Irex, Amanco and Cervecería Costa Rica and seven more companies saw their request to change electricity supplier hampered when the Regulatory Authority for Public Services (ARESEP) granted the municipality the authority to resolve the matter, which then rejected the request by the companies.
The new law creates investment opportunities in clean energy estimated at $1 billion for the next 4 years.
The new law "allows for the liberalization of the energy sector, modifying the scope of the National Electricity Company (ENEE), an institution that is the target of government creditors having operated with a deficit for the last four years."
Modeled on how fuel markets work in El Salvador and Guatemala, the government and private sector are looking at liberalization.
Due to the increasing prices of gasoline in Honduras, the private sector and the Government are considering liberalizing fuel prices, as has already been implemented in other countries in the region.
"If the mechanisms exists and there is control, this is an option.
The opening of the electricity market is generating opposition from unions and employers whose interests will be affected by deprivatization.
Some Honduran entrepreneurs and unionists disagree with the government sanctioning the General Law on the Electricity Industry. They are asking for it to be reformed, because they are worried about the deprivatization of the electricity market.
The Government has desisted from continuing with the projects for the opening of the electricity market because of a lack of agreement among stakeholders, unions and interested parties.
Nacion.com reports: "Five plans for an Electricity Law, a archived special committee on energy and an Electrical Contingency Act which has made no progress for one year and five months are evidence of the lack of support for the opening up of the energy market."
The leading Costa Rican presidential candidate would prefer state run companies to control the energy market.
Johnny Araya Monge, who was a former mayor of the capital San Jose for many years and is now presidential candidate for the ruling National Liberation Party (PLN), is the candidate with the highest number of voter intentions in recent polls.
Business associations say the country needs a comprehensive law that allows greater participation and competitiveness of private generators.
The Costa Rican Union of Chambers and Associations of Private Business Sector (UCCAEP) predicts sharp increases in electricity rates, and points to inefficiency in the management of the Instituto Costarricense de Electricidad (ICE), as the monopoly responsible for satisfying the country's demand for electricity.