Venezuela’s National Assembly has unanimously approved a partial reform of the country's electricity law, opening the power generation sector to authorised private and foreign investment amid a prolonged electricity crisis.
The reform was approved on November 10 and allows electricity generation to be undertaken by the state-owned operator, mixed companies and authorised private firms. The move aims to attract investment, expand electricity supply and improve the country's ageing power infrastructure.
Editorial Insight
Key Highlights
Important points readers should notice.
Venezuela's National Assembly unanimously approved the electricity law reform on November 10, 2026.
The reform permits authorised private and mixed companies to participate in electricity generation.
Private-sector concessions may extend up to 25 years.
Companies can develop electricity generation facilities for their own operations.
The government says the reform does not amount to complete privatisation.
Electricity shortages and infrastructure deterioration remain major challenges.
Under the revised legislation, private companies may receive concessions for periods of up to 25 years. These concessions are subject to government authorisation and applicable regulatory conditions.
The legislation also provides opportunities for companies to establish electricity generation facilities for their own operations. Oil companies and independent electricity generators can produce power for their internal networks without separate state authorisation, provided they do not connect those facilities to the national electricity grid.
National Assembly President Jorge Rodríguez said the reform does not represent complete privatisation of the electricity sector. Instead, it is intended to enable private companies to participate in electricity generation and self-generation.
Editorial Analysis
Why This Matters
The reform could encourage domestic and foreign investment in Venezuela's electricity infrastructure. Improved power generation and supply are important for industrial production, oil operations, businesses and essential public services.
He also indicated that the state would continue providing electricity subsidies, particularly for households unable to afford full tariffs.
Venezuela has faced a prolonged electricity crisis, with power cuts affecting households, businesses and industrial operations. Years of inadequate investment and maintenance have weakened the country's electricity infrastructure and reduced the reliability of supply.
Less than 40 per cent of Venezuela's electricity generation capacity is currently available, highlighting the scale of the infrastructure challenges.
The reform forms part of broader government efforts to attract private investment into strategic sectors, including electricity, oil and mining.
