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Honduras clashes with energy firm over island operations

Honduras and the Bonacco Electric Company (BELCO) are trading barbs, with the federal government arguing it stepped in in the power generator's operations because of a failure to properly serve its consumers, and the firm alleging a federal government takeover.

State-run National Electric Energy Company ENEE stated on Friday that BELCO has actually been operating on the Honduran Caribbean island of Guanaja without a proper license which the service it supplied was inefficient, pricey and susceptible in the face of growing demand on the island.

For its part, BELCO implicated the administration of leftist President Xiomara Castro of performing a confiscation of assets from a personal business in Honduras.

ENEE informed in a statement on Friday that it does not plan to expropriate the firm, however rather lead an orderly. intervention process at the demand of authorities and. locals of the island, which next-door neighbors the more popular. Roatan.

The state-run firm added that BELCO did not have the. licensing to lawfully operate, which there suffices. evidence from the electrical energy regulative commission about. faults in offering service.

BELCO said that it reserved the right to take legal action. against the federal government, though it did not right away clarify. whether it would.

In 2022, Honduras' government passed a law stating. electrical energy a public great. It likewise scrapped the privatization. procedure of ENEE, which had actually been begun more than a years. before.

(source: Reuters)