Venezuela is moving toward a fundamental shift in its energy infrastructure, with the National Assembly approving the first discussion of a reform that would open the country’s electricity sector to private investment.
- Legislation: Partial Reform of the Organic Law of the Electric System and Service.
- Primary Change: Transition from 15 years of strict state control to allowing private investment.
- Timeline: Plenary session held June 2.
Ending a Decade of State Monopoly
The legislative move signals a departure from a 15-year era of total government oversight of the power grid. During a plenary session convened on June 2, the National Assembly debated and advanced the Partial Reform of the Organic Law of the Electric System and Service, a measure designed to invite private capital into a sector that has been exclusively state-run since the previous decade.
Concerns Over Asset Liquidation
While the government frames the reform as a necessary step for modernization and investment, the move has met with sharp criticism from civic observers. Monitor Ciudad raised alarms regarding the potential consequences of the legislation, suggesting that the reform is less about infrastructure improvement and more about the disposal of state property.
The reform of the Electric Law seeks to “sell off” assets and will increase corruption. Monitor Ciudad
The group’s warning highlights a tension between the government’s push for privatization and fears that the process will lack transparency, potentially leading to the undervalued sale of national assets.
