President Takes Control of Utility Company

February 22, 2007
Roatan, Honduras

Empresa Nacional de Energia Electrica de Honduras (ENEH) - the state-run electric company here - lost $160 million last year and has been unable to meet the energy needs of Honduras' 7.5 million people. Major cities frequently experience rolling blackouts, and much of the countryside lacks electricity entirely.

The Associated Press reports that, in a radical step to reduce further losses and salvage the company, President Manuel Zelaya has assumed control and says he will run the company himself. His first step, he says, will be to pay off $27 million in debt that the government has racked up with the energy company over the past 15 years.

"Starting today, I will personally direct the company's operations, in whose installations I will spend six hours a day," he said, stressing that the huge daily losses the company reports are unacceptable. He did not offer more details, but said he would remain in charge until the company's finances improve.

The company barely has 600,000 clients and is unable to meet usage demands. President Zelaya blames the situation on tax evasion and corruption. Estimates are that 10% of the utility's customers do not pay their bills, largely because of a government-imposed 49% electricity tax.

Best Regards,

Janine Goben
International Living / Honduras
E-mail: Honduras@InternationalLiving.com.

P.S. Despite occasional blackouts (which aren't as bad here on the island as they are in rural areas of the country), we have a pretty good life here in Honduras. I'll be happy to tell you all about it at the International Living Live Overseas Conference in Las Vegas April 23-25. Find out more about this event here.