Electrical Grid

Caracas, November 10, 2026 (venezuelanalysis.com) – The Venezuelan National Assembly approved on Tuesday a reform of the Organic Law of the Electrical System and Service to open the electrical grid to the private sector amid a crisis of rising demand and recurring blackouts.

The new legislation stipulates that power generation, transmission, distribution, and commercialization can now “be carried out by the state-owned operating company, as well as by mixed-ownership and private companies holding the corresponding authorization.”

“The reform will allow private entities to provide electricity services,” National Assembly President Jorge Rodríguez told reporters after the legislative session. “It will make self-generation possible, allowing private companies to generate and supply electricity to businesses, industries, shopping centers, etc. This will help increase supply.”

The Venezuelan parliament had preliminarily approved the reform in June. A commission incorporated adjustments to the text, which deputies reviewed across several parliamentary debates before Tuesday’s final vote. The final text, seen by Venezuelanalysis, will be published in the National Gazette in the coming days.

The updated law puts an end to the state monopoly over electricity established by former President Hugo Chávez. A 2007 law identified the sector as “strategic for the nation” and merged several companies into the National Electric Corporation (CORPOELEC). 

Under the new rules, private companies can set up new power plants, build transmission infrastructure and charge a fixed toll, or receive distribution and commercialization rights in specific areas.

In addition, they can also receive concessions of state assets for a maximum of 25 years, with the responsibility of returning them to CORPOELEC or another designated state entity at the end of the period. The state will retain exclusive control over all hydroelectric generation in the Caroní basin as well as transmission and distribution responsibilities in “strategic” areas.

The law also provides that disputes or disagreements of any kind that cannot be settled amicably by the parties may be brought before Venezuelan courts or resolved “through alternative dispute resolution mechanisms.” US licenses allowing Western corporations to deal with Venezuela have demanded that disputes be settled in the US, the UK, France, or Singapore.

Regarding oil companies, the law stipulates that they must “ensure a reliable and stable supply of electricity for the execution of primary activities” through self-generation, cogeneration, or third-party contracts designed to secure operational autonomy. Oil and independent power generation firms will also not require state authorization to generate electricity for their internal networks, unless they connect to the national grid.

Rodríguez stressed that the changes do not to amount to privatizing electricity services but rather constitute an “expansion.”

“An appropriate sanctions framework has been established, along with guarantees for private entities to participate. This is not privatization, but an expansion that allows private companies to provide services, particularly to large consumers,” he stated.

The head of the legislature added that electricity consumption tariffs will be computed in foreign currency and converted using the official exchange rate set by the Central Bank of Venezuela (BCV). He also disclosed a policy of subsidies intended to shield vulnerable sectors.

“This will primarily benefit people who, because of their income level, cannot afford the full tariff, unlike industries or major retailers,” he concluded.

The legislation also establishes a National Electric System Superintendency, empowered to establish tariffs, initiate administrative investigations, and impose penalties on those who violate the law. Operators may face fines of up to 2 percent of their gross revenue for failing to comply with regulations governing electrical installations, disregarding instructions issued by competent authorities, refusing to provide requested information, or obstructing inspections.

Consumers, meanwhile, may be fined between US $50 and $10,000 for unauthorized use of electricity, with similar penalties for unauthorized consumption, and ten times larger ones for connecting equipment that causes disturbances. The same range of fines applies to tampering with, damaging, or modifying meters and supplying electricity to third parties without authorization, among other violations.

The new law also allows the Venezuelan government to grant tax breaks to private corporations at its discretion to “promote the expansion, efficiency, or environmental sustainability” of the electric system.

The electricity reform, which follows major legislative pro-business overhauls to the mining and energy sectors, comes amid a persistent electricity crisis that sees most of the country face daily blackouts, sometimes lasting up to 12 hours.

Residents have staged recurring protests. On Monday, a crowd blocked the Argimiro Gabaldón highway connecting Barcelona and Puerto La Cruz in Anzoátegui State for several hours.

The Venezuelan Observatory of Social Conflict (OVCS) registered 531 protests related to electricity services nationwide in September. For her part, Acting President Delcy Rodríguez has criticized the demonstrations, affirming that “burning tires does not add a single megawatt to the electric grid.”

Venezuela currently produces only around 12,000 MW, roughly 40 percent of its installed capacity, and faces a generation deficit of over 4,000 MW. Venezuelan authorities have pledged to add 1,300 MW to the grid before the end of the year and have negotiated agreements with GE Vernova, Siemens, and IMPSA to bring paralyzed power plants back online.

Targeting short-term improvements, CORPOELEC recently signed an agreement with Turkish company Karpowership to lease two power-generating vessels that would add 200 MW to the grid in western Zulia State, one of the states hardest hit by electricity shortages. 

However, Venezuelan officials have not provided additional details on the contract, including its cost, duration, and fuel supply.

Edited by Ricardo Vaz in Caracas.

Caracas, October 29, 2026 (venezuelanalysis.com) – Venezuelan Acting President Delcy Rodríguez has instructed the Foreign Ministry and the Attorney General’s Office to advance diplomatic and legal efforts to recover 31 tonnes of Venezuelan gold held by the Bank of England’s vaults for more than six years.

The freeze on the reserves, currently valued at around US $4 billion, dates back to the United Kingdom’s refusal to recognize Nicolás Maduro’s 2018 reelection. A year later, opposition leader Juan Guaidó formally asked British authorities to prevent the Venezuelan government from accessing the gold.

During a cabinet meeting on Wednesday, Rodríguez described the ongoing freeze as a theft. 

“It is a mockery, but one aimed at illegitimately appropriating Venezuela’s gold reserves. We want no more excuses. Even the irrational lawsuit pursued by opposition factions was withdrawn by the very same people who brought it,” she said.

Rodríguez added that she “will not give up” on the claim and recalled that “there is an agreement among Venezuela’s political sectors” to secure the gold’s return. 

The Venezuelan government and an opposition sector representing the defunct 2015 National Assembly have been engaged in a US-backed dialogue process. On October 21, the delegations agreed to establish a joint commission to engage with London and seek the return of the reserves. The parties announced that the funds would be destined for post-earthquake reconstruction efforts, though Rodríguez has also pledged to use it to bolster public services and the electricity grid.

The acting leader had previously written to King Charles III requesting the release of the gold. In September, London and Caracas likewise began a diplomatic rapprochement and announced plans to appoint ambassadors to their respective missions.

According to reports, the Venezuelan gold is set to be transferred to the US Federal Reserve in New York, where its sale or use as collateral for loans would be contingent on the Trump administration’s approval and subjected to foreign audits.

Wednesday’s cabinet meeting additionally saw Rodríguez announce the arrival of 41 heavy machinery units to southeast Bolívar State to strengthen the Venezuelan Mining Corporation’s (CVM) operations at the Chocó plant.

The acting president said the delivery was part of a comprehensive state plan to acquire 544 pieces of equipment, including surface and underground machinery, drilling equipment, and mobile units. 

“More than 60 percent of this purchase will have arrived before the end of the year. What does that tell us? More gold production in 2027,” she affirmed. The Venezuelan executive has pushed a pro-business overhaul of mining legislation in recent months in a bid to court foreign investment. In September, New York-based Heeney Capital and commodities trader Mercuria Energy received a 30-year concession of the Chocó 10 mine in Bolívar State.

Rodríguez also promised short-term relief from electricity outages, often lasting up to 12 hours a day in certain parts of the country. However, she criticized the recurrent protests against blackouts

“I have not seen a single megawatt added to the national electricity system, which has been battered by the blockade, as a result of burning a tire (…) Soon, you will see relief in a country that has been hit so hard by the sanctions demanded by radical sectors,” she said.

Venezuelan authorities have pledged to restore 1,300 MW of generation capacity before the end of the year to mitigate a current deficit of around 4,500 MW. The Venezuelan National Assembly is close to approving a reform that will open electrical generation, transmission, distribution, and commercialization to the private sector.

Caracas has also turned to multinational corporations in a bid to recover the electrical grid.

However, GE Vernova CEO Scott Strazik stated that the company had already selected its contractors and completed the planning work but had not begun repairs because it has yet to be paid. “This is not an environment in which we are going to act without receiving payment upfront,” he said.

Meanwhile, popular organizations and trade unions staged demonstrations in Caracas and other cities on Tuesday. Through the newly formed “Blackout Victims Committee,” activists criticized the government for prioritizing the oil industry to satisfy US interests at the expense of rationing electricity throughout the country.

Edited by Ricardo Vaz in Caracas.