Parliament

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.

Parliament’s approval lays the groundwork for further Turkish involvement in Saudi Arabia’s conflict with the Houthis.

Turkiye’s parliament has ratified a defence pact with Saudi Arabia and Pakistan that includes a collective defence clause, committing NATO’s second-largest military to the group’s aid in case of attack.

The ratification on Thursday comes as Riyadh continues to face attacks by Yemen’s Iran-backed Houthis.

Turkiye first signed the Mecca Joint Defence Agreement in August and sent it to parliament for ratification last month.

Article 1 of a bill approving the pact was adopted by the Turkish parliament on Wednesday.

But afterwards, Deputy Parliament Speaker Celal Adan adjourned the session until Thursday afternoon, the Anadolu news agency reported.

After parliament returned to session, lawmakers continued to debate the other articles in the pact.

The agreement ultimately passed with 279 votes in favour and 119 against, with 398 of the chamber’s 592 lawmakers taking part in the vote.

The pact contains 16 articles, according to a document submitted to the Turkish parliament, seen by the Reuters news agency.

In Article 1 of the accord, the signatories shall use “all necessary means” to eliminate threats to one another’s territorial integrity. Article 1 can be invoked in case of an attack on any member state.

Once the first article is invoked, the document lays out provisions for what follows.

“In the event one of the parties is subjected to an armed attack or military aggression by another country or group of countries, the parties shall immediately provide assistance to the party under attack, utilising the full range of mutual assistance measures available to them,” says Article 2 of the pact.

This key clause mirrors Article 5 of the North Atlantic Treaty, the document that established the NATO military alliance. NATO’s Article 5 establishes that an attack on one member is treated as an attack on all.

Given that Turkiye is a member of both NATO and the Mecca pact, critics have raised questions about whether the country’s government might face a conflict of interest in allocating its military resources.

Turkish officials, however, have dismissed such concerns as unfounded.

Other articles in the Mecca pact concern a mutual agreement to increase defence industry cooperation and military coordination, with the aim of deterring threats.

Those articles, in part, commit member states to conducting joint training, pursuing technological innovation and sharing logistics and intelligence resources.

The draft approved by Turkish lawmakers commits member countries to the pact for 10 years, after which point they may withdraw.

It also leaves open the possibility of other countries joining, with the approval of the pact’s existing members. Syria’s government has already expressed interest.

Despite Thursday’s parliamentary ratification, it is not a foregone conclusion that Turkish troops would be deployed to Saudi Arabia amid the Houthi attacks.

Experts say any Turkish troop deployment would also require other legislative processes.

Turkiye’s Defence Minister Yasar Guler said in October that the scope of potential support for Saudi Arabia would be determined after ratification.

“We absolutely do not foresee entering into any conflict with the Houthis,” Turkish media reported Guler as saying. Instead, Turkish support “would be to strengthen deterrence”.

Tensions between Saudi Arabia and Yemen had abated somewhat following a 2022 ceasefire. But the Houthis have escalated their attacks on Saudi Arabia in recent months, notably launching a series of deadly strikes on King Khalid International Airport in Riyadh.

The region also remains embroiled in the US-Israel war on Iran, which has contributed to cross-border tensions.

On Thursday, Saudi Arabia announced it had intercepted a drone in the region of Medina. Riyadh has accused the Houthis several times of targeting Mecca and Medina, two holy cities in Islam, an accusation the Iran-backed group systematically rejects.

Lawmakers adjourn second session as one party tells members to abstain over unclear commitment.

Egypt’s parliament has delayed a vote on authorising its armed forces to support Saudi Arabia, which has come under increasing attack from the Iran-aligned Houthis in Yemen.

The vote has been adjourned to October 26, the House of Representatives said on Monday. The move prolongs the debate over Egypt’s role in the Yemeni conflict.

The opposition Egyptian Social Democratic Party said it had told its lawmakers to abstain.

The party said parliament had not been given enough information about the mission’s objectives, duration, cost, or the risks to Egyptian troops.

However, the party, which holds nearly a dozen seats, said most of its lawmakers support the measure, according to two members of parliament who spoke to the AFP news agency.

The parliament has been tasked with authorising President Abdel Fattah el-Sisi to approve any request from Saudi Arabia for defence assistance amid attacks on the kingdom by Yemen’s Houthis.

The call for support came after the Iran-backed rebel group attacked Riyadh’s international airport and the state oil company Saudi Aramco last week. Saudi authorities say 13 people were killed in the October 10 attack on the airport.

El-Sisi said on Saturday that Egypt would take “any measure” needed to protect its Gulf allies.

“I’m not talking about confronting or attacking anyone,” el-Sisi said. “We’re talking only about defence.”

After approval from the National Defence Council, chaired by el-Sisi, Egypt’s constitution requires a two-thirds parliamentary majority to send troops on a combat mission abroad. The council gave its approval on Sunday.

Egypt’s rocky economy

The Grand Imam of al-Azhar urged Arab and Muslim leaders on Sunday to mediate Egypt’s parliamentary decision and avert further bloodshed.

Saudi Arabia holds an important role in financing Egypt’s rocky economy. It is due to deposit $5.3bn into Egypt’s central bank this month, plus $267.39m in interest.

Egypt’s EGX30 stock index fell early on Monday amid concerns about possible military involvement but recovered to close 0.4 percent higher.

Nematallah Choucri, head of research at HC Securities, told the Reuters news agency that geopolitical developments are the main driver of recent market losses.

Egypt is also affected by the shortage of oil and gas exports from the Middle East due to the United States war on Iran and fighting in Yemen.

Egypt’s economy is heavily dependent on remittances from Egyptians working in the hydrocarbons industry in Saudi Arabia.

Suez Canal threat

Political analyst and Gulf studies expert Thomas Bonnie James told Al Jazeera that the Houthi security threat to Saudi Arabia also threatens the Suez Canal, which Egypt’s foreign minister says has lost about $11bn since the Houthis launched attacks in the Bab al-Mandeb strait in solidarity with Gaza in 2023.

James also said Egypt does not want to be seen as the regional ally that “stood aside while others defended the kingdom”.

Turkiye and Pakistan have made their own pledges after activating the Mecca defence pact with Riyadh, signed in August, amid the deteriorating security situation in the Middle East.