Analysis of regulatory framework of electric power market in Honduras: Promising and essential changes

The Honduran legislation allows the creation and operation of an electric market that recognizes private participation in generation, distribution and free access to the transmission grid. However, such legislation has not been implemented to its fullest causing that the electric market in Honduras to be poorly developed, with the investments needed for its suitable operation delayed.The following paper presents a summary of the Legislation and structure of Honduras’s electric market and the weakness in the current regulatory framework.Additionally, suggestions for possible regulatory changes, which are needed to improve the electric market, are established. These changes must be consistent with the standards found in any process of buying and selling a commodity, especially one so essential and strategic for the development of any Nation, as is electricity.

► This document is a summary of current regulatory framework and structure of electricity power market in Honduras.
► The weaknesses of such regulatory framework are shown.
► Suggestions for possible regulatory changes, which are needed to improve the electric market, are established.