Venezuela Assembly Backs Power Reform After 15 Years, Opening Electricity Sector to Private Investment
Updated
Updated · Bloomberg · Jun 3
Venezuela Assembly Backs Power Reform After 15 Years, Opening Electricity Sector to Private Investment
3 articles · Updated · Bloomberg · Jun 3
Unanimous preliminary approval on Tuesday moved Venezuela closer to letting private companies generate, distribute and sell electricity under government concessions.
The bill would allow private firms, mixed enterprises and companies with minority state ownership to operate alongside the state, reversing more than 15 years of exclusive state control.
Tariffs under the proposal would be set to reflect service costs and give operators a reasonable return on investment, a key condition for attracting capital.
The reform is not yet law: it still needs a second and final vote in the National Assembly before the market can formally open.
Will privatizing Venezuela's power grid end blackouts or create a new wave of corruption?
Can new laws protect investors in a country with a history of seizing private assets?
Venezuela’s Power Grid at a Crossroads: The 2026 Electricity Sector Reform and Its Impact on Investment, Governance, and Recovery
Overview
On June 2, 2026, Venezuela's National Assembly took a major step by initially approving a 42-article electricity sector reform law. This law aims to address chronic power outages and the long-standing deterioration of the power grid. The reform introduces pivotal changes designed to attract much-needed foreign capital and expertise, allowing private investment and the creation of joint ventures across the entire electricity sector. Companies with minority state stakes will be permitted to participate, marking a significant shift from previous policies. These changes are intended to revitalize Venezuela’s struggling power infrastructure and open the sector to diverse participation.