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Clifford Chance

Clifford Chance


Honduran Congress Passed A Law Calling For The Renegotiation Of Renewable Energy Tariffs And Potential Nationalization Of Energy Plants

May 16, 2022

Local media reported that on May 12, 2022, the Congress of Honduras approved in record time a legislative initiative by President Xiomara Castro seeking to enable the Government to renegotiate electricity tariffs with renewable energy generators ("New Energy Law").  Although the New Energy Law was not made public in the Official Gazette at that time, it was reported that under this new legal framework, if a generator refuses to renegotiate, then the Government may take over the assets following payment of a "just compensation" with government bonds. The compensation and its valuation procedure of the New Energy Law are unclear.  

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