Venezuela Moves to Open Its Collapsed Power Sector to Private Capital

IBOV

170,331

▼ 2.22%

IPSA

10,304

▼ 0.54%

IPC MEX

67,392

▼ 1.31%

MERVAL

3,174,511

▲ 0.33%

COLCAP

2,228.19

▼ 0.48%

BVL PERÚ

34,937.73

▲ 0.29%

USD/BRL

5.08

▲ 0.26%

USD/MXN

17.27

▼ 0.07%

USD/CLP

894.81

▼ 0.04%

USD/COP

3,559

▼ 0.46%

USD/PEN

3.41

▲ 0.12%

USD/ARS

1,437

▼ 0.03%

USD/UYU

40.36

▲ 1.40%

USD/PYG

6,037

▲ 1.68%

USD/BOB

6.86

▲ 1.45%

USD/DOP

58.11

▲ 0.71%

USD/CRC

456.90

▲ 2.50%

USD/GTQ

7.62

▲ 2.23%

USD/HNL

26.64

▲ 0.41%

USD/NIO

36.62

▲ 0.31%

USD/VES

561.88

▼ 0.13%

USD/PAB

1.00

▲ 2.22%

USD/BZD

2.00

▲ 1.65%

USD/JMD

157.19

▲ 0.75%

USD/TTD

6.66

▲ 0.18%

EUR/BRL

5.91

▲ 0.36%

BRENT

94.91

▼ 0.13%

WTI

92.92

▼ 0.13%

IRON ORE

161.91

— —

COPPER

6.44

▼ 1.09%

GOLD

4,493

▲ 0.39%

SILVER

72.87

▼ 1.23%

SOY

1,128

▼ 0.18%

CORN

420.75

▼ 0.88%

WHEAT

582.75

▲ 0.17%

COFFEE

245.80

▼ 0.55%

SUGAR

14.43

▲ 1.12%

ORANGE JUICE

168.75

▲ 0.21%

COTTON

73.47

▼ 1.90%

COCOA

3,894

▼ 1.79%

BEEF

241.68

▼ 2.01%

CATTLE

353.38

▲ 3.14%

LITHIUM

83.28

▼ 1.86%

PETR4

41.25

▼ 0.77%

VALE3

81.79

▼ 3.78%

ITUB4

38.72

▼ 2.12%

BBDC4

17.37

▼ 2.14%

ABEV3

16.07

▼ 2.31%

BBAS3

19.53

▼ 1.81%

B3SA3

15.52

▼ 4.67%

WEGE3

41.78

▼ 0.52%

PRIO3

62.59

▲ 0.98%

SUZB3

41.22

▲ 1.95%

RENT3

40.44

▼ 3.32%

AZZA3

17.38

▼ 8.48%

CSAN3

3.58

▼ 7.73%

RAIZ4

0.39

▲ 2.63%

PCAR3

1.54

▼ 1.91%

GMAT3

4.20

▼ 0.24%

PSSA3

48.16

▼ 1.19%

CVCB3

1.48

▼ 3.90%

POSI3

3.75

▼ 7.64%

SLCE3

14.98

▼ 2.03%

NATU3

9.80

▼ 0.61%

BRKM5

9.43

▼ 5.79%

RANI3

7.90

▲ 0.51%

CSNA3

6.68

▼ 6.31%

CMIN3

4.50

▼ 5.86%

USIM5

11.46

▼ 4.82%

GGBR4

24.13

▼ 2.11%

ENEV3

24.23

▼ 4.42%

NEOE3

33.80

— 0.00%

CPFE3

43.30

▼ 0.46%

CMIG4

10.86

▼ 1.27%

EQTL3

39.81

▲ 1.89%

LREN3

14.64

▼ 5.67%

VIVT3

33.75

▼ 0.15%

RAIL3

13.89

▼ 2.11%

KLABIN

16.76

▼ 0.89%

RAIA DROGASIL

17.51

▼ 3.26%

RDOR3

33.11

▼ 3.33%

HAPV3

11.22

▼ 8.26%

FLRY3

14.70

▼ 4.11%

SMTO3

17.30

▼ 1.14%

UGPA3

24.92

▼ 3.07%

VBBR3

29.48

▼ 2.16%

BBSE3

35.04

▼ 0.26%

BPAC11

50.71

▼ 4.77%

CURY3

29.45

▼ 6.00%

AERI3

2.31

▼ 1.28%

VIVARA

20.50

▼ 4.21%

COMPASS

25.79

▼ 2.68%

VAMOS

2.94

▼ 1.01%

SANB11

26.72

▼ 2.34%

ASAI3

8.79

▼ 2.87%

SBSP3

27.23

▼ 1.66%

WALMEX

51.57

▼ 1.15%

GMEXICO

211.45

▼ 1.21%

FEMSA

211.59

▼ 0.10%

CEMEX

22.39

▼ 0.27%

GFNORTE

179.89

▼ 0.44%

BIMBO

57.14

▼ 2.12%

TELEVISA

9.34

▲ 3.32%

AMX

21.90

▼ 1.35%

GAP

414.21

▼ 1.02%

ASUR

292.80

▼ 1.34%

OMA

215.43

▼ 1.93%

KOF

184.60

▼ 1.31%

GRUMA

290.36

▼ 1.38%

KIMBER

37.71

▼ 1.00%

SQM-B

69,655

▼ 1.89%

COPEC

6,115

▲ 0.25%

BSANTANDER

68.11

▲ 0.01%

FALABELLA

5,574

▲ 2.28%

ENELAM

76.56

▼ 0.27%

CENCOSUD

2,160

▼ 0.36%

CMPC

1,050

▲ 2.14%

BANCO CHILE

165.50

▲ 0.92%

LATAM AIR

22.26

▼ 0.13%

YPF

83,850

▲ 0.96%

GGAL

7,340

▼ 0.14%

PAMPA

5,135

▲ 0.39%

TXAR

700.00

▲ 3.32%

ALUAR

1,009

▼ 0.59%

TGS

9,245

▲ 0.43%

CEPU

2,277

▼ 1.39%

MIRGOR

17,000

▲ 0.44%

COME

47.31

▼ 1.25%

LOMA NEGRA

3,445

▼ 0.22%

BYMA

293.50

▲ 0.17%

TELECOM ARG

4,015

▼ 0.93%

ECOPETROL

15.64

▲ 0.39%

BANCOLOMBIA

72.33

▲ 0.11%

GRUPO AVAL

4.90

▼ 1.61%

CREDICORP

326.47

▼ 0.29%

SOUTHERN COPPER

194.09

▼ 1.27%

BUENAVENTURA

34.27

▲ 1.21%

MERCADOLIBRE

1,635

▼ 0.23%

NUBANK

12.12

▲ 4.12%

XP

15.64

▲ 0.26%

PAGSEGURO

8.81

▲ 0.46%

STONE

10.76

▲ 1.13%

GLOBANT

39.58

▼ 0.23%

TECNOGLASS

42.74

▲ 0.92%

GAP AIRPORT

239.64

▼ 0.45%

ASUR

292.80

▼ 1.34%

OMA AIRPORT

99.76

▼ 1.40%

AMX ADR

25.34

▼ 0.78%

FEMSA ADR

122.53

▲ 0.59%

CEMEX ADR

12.94

▲ 0.31%

PETROBRAS ADR

18.06

▼ 0.71%

VALE ADR

15.77

▼ 1.81%

ITAU ADR

7.64

▲ 0.66%

SANTANDER BR

5.35

▲ 0.85%

AMBEV ADR

3.11

▼ 0.96%

CSN

1.31

▼ 0.38%

GERDAU

4.71

▼ 0.95%

LATAM ADR

49.71

— 0.00%

BTC

62,440

▼ 2.13%

ETH

1,675

▼ 5.35%

SOL

66.58

▼ 3.11%

XRP

1.13

▼ 3.04%

BNB

594.06

▼ 1.57%

ADA

0.16

▼ 9.55%

DOGE

0.08

▼ 4.09%

AVAX

7.13

▼ 7.26%

LINK

7.62

▼ 4.81%

DOT

1.00

▼ 3.67%

LTC

44.31

▼ 2.73%

BCH

224.63

▼ 8.38%

TRX

0.33

▼ 2.01%

XLM

0.19

▼ 5.42%

HBAR

0.08

▼ 3.02%

NEAR

2.04

▼ 6.99%

ATOM

1.72

▼ 4.52%

AAVE

67.11

▼ 5.68%

SELIC

14.50%

—

EMBRAER

69.67

▼ 3.17%

EMBRAER ADR

56.51

▲ 2.37%

JBS

12.21

▲ 2.78%

JBS BDR

59.90

▼ 1.17%

MBRF3

15.78

▼ 0.44%

MBRFY

3.16

▲ 3.27%

INTER

5.76

▼ 0.69%

EGX

52,653

▲ 0.17%

USD/ZAR

16.26

▼ 0.15%

USD/NGN

1,358

— 0.00%

NIKKEI

66,588

▼ 1.31%

CSI300

4,817

▼ 1.79%

HSI

24,962

▼ 1.15%

NIFTY

23,367

▼ 0.21%

KOSPI

8,161

▼ 5.54%

JCI

5,595

▼ 4.20%

USD/JPY

159.90

▼ 0.04%

USD/CNY

6.7650

▼ 0.12%

DAX

25,002

▲ 0.23%

CAC

8,290

▲ 0.55%

FTSE

10,398

▲ 0.36%

MIB

50,263

▲ 0.18%

IBEX

18,469

▲ 1.06%

STOXX

626.19

▲ 0.28%

EUR/USD

1.1640

▲ 0.17%

GBP/USD

1.3472

▲ 0.33%

SPX

7,584

▲ 0.41%

DJI

51,562

▲ 1.73%

NDX

30,408

▼ 0.53%

RUT

2,935

▲ 1.45%

TSX

35,217

▲ 1.19%

VIX

15.64

▲ 1.56%

USD/CAD

1.3880

▼ 0.17%

US10Y

4.4770

▼ 0.31%

IBOV

170,331

▼ 2.22%

IPSA

10,304

▼ 0.54%

IPC MEX

67,392

▼ 1.31%

MERVAL

3,174,511

▲ 0.33%

COLCAP

2,228.19

▼ 0.48%

BVL PERÚ

34,937.73

▲ 0.29%

USD/BRL

5.08

▲ 0.26%

USD/MXN

17.27

▼ 0.07%

USD/CLP

894.81

▼ 0.04%

USD/COP

3,559

▼ 0.46%

USD/PEN

3.41

▲ 0.12%

USD/ARS

1,437

▼ 0.03%

USD/UYU

40.36

▲ 1.40%

USD/PYG

6,037

▲ 1.68%

USD/BOB

6.86

▲ 1.45%

USD/DOP

58.11

▲ 0.71%

USD/CRC

456.90

▲ 2.50%

USD/GTQ

7.62

▲ 2.23%

USD/HNL

26.64

▲ 0.41%

USD/NIO

36.62

▲ 0.31%

USD/VES

561.88

▼ 0.13%

USD/PAB

1.00

▲ 2.22%

USD/BZD

2.00

▲ 1.65%

USD/JMD

157.19

▲ 0.75%

USD/TTD

6.66

▲ 0.18%

EUR/BRL

5.91

▲ 0.36%

BRENT

94.91

▼ 0.13%

WTI

92.92

▼ 0.13%

IRON ORE

161.91

— —

COPPER

6.44

▼ 1.09%

GOLD

4,493

▲ 0.39%

SILVER

72.87

▼ 1.23%

SOY

1,128

▼ 0.18%

CORN

420.75

▼ 0.88%

WHEAT

582.75

▲ 0.17%

COFFEE

245.80

▼ 0.55%

SUGAR

14.43

▲ 1.12%

ORANGE JUICE

168.75

▲ 0.21%

COTTON

73.47

▼ 1.90%

COCOA

3,894

▼ 1.79%

BEEF

241.68

▼ 2.01%

CATTLE

353.38

▲ 3.14%

LITHIUM

83.28

▼ 1.86%

PETR4

41.25

▼ 0.77%

VALE3

81.79

▼ 3.78%

ITUB4

38.72

▼ 2.12%

BBDC4

17.37

▼ 2.14%

ABEV3

16.07

▼ 2.31%

BBAS3

19.53

▼ 1.81%

B3SA3

15.52

▼ 4.67%

WEGE3

41.78

▼ 0.52%

PRIO3

62.59

▲ 0.98%

SUZB3

41.22

▲ 1.95%

RENT3

40.44

▼ 3.32%

AZZA3

17.38

▼ 8.48%

CSAN3

3.58

▼ 7.73%

RAIZ4

0.39

▲ 2.63%

PCAR3

1.54

▼ 1.91%

GMAT3

4.20

▼ 0.24%

PSSA3

48.16

▼ 1.19%

CVCB3

1.48

▼ 3.90%

POSI3

3.75

▼ 7.64%

SLCE3

14.98

▼ 2.03%

NATU3

9.80

▼ 0.61%

BRKM5

9.43

▼ 5.79%

RANI3

7.90

▲ 0.51%

CSNA3

6.68

▼ 6.31%

CMIN3

4.50

▼ 5.86%

USIM5

11.46

▼ 4.82%

GGBR4

24.13

▼ 2.11%

ENEV3

24.23

▼ 4.42%

NEOE3

33.80

— 0.00%

CPFE3

43.30

▼ 0.46%

CMIG4

10.86

▼ 1.27%

EQTL3

39.81

▲ 1.89%

LREN3

14.64

▼ 5.67%

VIVT3

33.75

▼ 0.15%

RAIL3

13.89

▼ 2.11%

KLABIN

16.76

▼ 0.89%

RAIA DROGASIL

17.51

▼ 3.26%

RDOR3

33.11

▼ 3.33%

HAPV3

11.22

▼ 8.26%

FLRY3

14.70

▼ 4.11%

SMTO3

17.30

▼ 1.14%

UGPA3

24.92

▼ 3.07%

VBBR3

29.48

▼ 2.16%

BBSE3

35.04

▼ 0.26%

BPAC11

50.71

▼ 4.77%

CURY3

29.45

▼ 6.00%

AERI3

2.31

▼ 1.28%

VIVARA

20.50

▼ 4.21%

COMPASS

25.79

▼ 2.68%

VAMOS

2.94

▼ 1.01%

SANB11

26.72

▼ 2.34%

ASAI3

8.79

▼ 2.87%

SBSP3

27.23

▼ 1.66%

WALMEX

51.57

▼ 1.15%

GMEXICO

211.45

▼ 1.21%

FEMSA

211.59

▼ 0.10%

CEMEX

22.39

▼ 0.27%

GFNORTE

179.89

▼ 0.44%

BIMBO

57.14

▼ 2.12%

TELEVISA

9.34

▲ 3.32%

AMX

21.90

▼ 1.35%

GAP

414.21

▼ 1.02%

ASUR

292.80

▼ 1.34%

OMA

215.43

▼ 1.93%

KOF

184.60

▼ 1.31%

GRUMA

290.36

▼ 1.38%

KIMBER

37.71

▼ 1.00%

SQM-B

69,655

▼ 1.89%

COPEC

6,115

▲ 0.25%

BSANTANDER

68.11

▲ 0.01%

FALABELLA

5,574

▲ 2.28%

ENELAM

76.56

▼ 0.27%

CENCOSUD

2,160

▼ 0.36%

CMPC

1,050

▲ 2.14%

BANCO CHILE

165.50

▲ 0.92%

LATAM AIR

22.26

▼ 0.13%

YPF

83,850

▲ 0.96%

GGAL

7,340

▼ 0.14%

PAMPA

5,135

▲ 0.39%

TXAR

700.00

▲ 3.32%

ALUAR

1,009

▼ 0.59%

TGS

9,245

▲ 0.43%

CEPU

2,277

▼ 1.39%

MIRGOR

17,000

▲ 0.44%

COME

47.31

▼ 1.25%

LOMA NEGRA

3,445

▼ 0.22%

BYMA

293.50

▲ 0.17%

TELECOM ARG

4,015

▼ 0.93%

ECOPETROL

15.64

▲ 0.39%

BANCOLOMBIA

72.33

▲ 0.11%

GRUPO AVAL

4.90

▼ 1.61%

CREDICORP

326.47

▼ 0.29%

SOUTHERN COPPER

194.09

▼ 1.27%

BUENAVENTURA

34.27

▲ 1.21%

MERCADOLIBRE

1,635

▼ 0.23%

NUBANK

12.12

▲ 4.12%

XP

15.64

▲ 0.26%

PAGSEGURO

8.81

▲ 0.46%

STONE

10.76

▲ 1.13%

GLOBANT

39.58

▼ 0.23%

TECNOGLASS

42.74

▲ 0.92%

GAP AIRPORT

239.64

▼ 0.45%

ASUR

292.80

▼ 1.34%

OMA AIRPORT

99.76

▼ 1.40%

AMX ADR

25.34

▼ 0.78%

FEMSA ADR

122.53

▲ 0.59%

CEMEX ADR

12.94

▲ 0.31%

PETROBRAS ADR

18.06

▼ 0.71%

VALE ADR

15.77

▼ 1.81%

ITAU ADR

7.64

▲ 0.66%

SANTANDER BR

5.35

▲ 0.85%

AMBEV ADR

3.11

▼ 0.96%

CSN

1.31

▼ 0.38%

GERDAU

4.71

▼ 0.95%

LATAM ADR

49.71

— 0.00%

BTC

62,440

▼ 2.13%

ETH

1,675

▼ 5.35%

SOL

66.58

▼ 3.11%

XRP

1.13

▼ 3.04%

BNB

594.06

▼ 1.57%

ADA

0.16

▼ 9.55%

DOGE

0.08

▼ 4.09%

AVAX

7.13

▼ 7.26%

LINK

7.62

▼ 4.81%

DOT

1.00

▼ 3.67%

LTC

44.31

▼ 2.73%

BCH

224.63

▼ 8.38%

TRX

0.33

▼ 2.01%

XLM

0.19

▼ 5.42%

HBAR

0.08

▼ 3.02%

NEAR

2.04

▼ 6.99%

ATOM

1.72

▼ 4.52%

AAVE

67.11

▼ 5.68%

SELIC

14.50%

—

EMBRAER

69.67

▼ 3.17%

EMBRAER ADR

56.51

▲ 2.37%

JBS

12.21

▲ 2.78%

JBS BDR

59.90

▼ 1.17%

MBRF3

15.78

▼ 0.44%

MBRFY

3.16

▲ 3.27%

INTER

5.76

▼ 0.69%

EGX

52,653

▲ 0.17%

USD/ZAR

16.26

▼ 0.15%

USD/NGN

1,358

— 0.00%

NIKKEI

66,588

▼ 1.31%

CSI300

4,817

▼ 1.79%

HSI

24,962

▼ 1.15%

NIFTY

23,367

▼ 0.21%

KOSPI

8,161

▼ 5.54%

JCI

5,595

▼ 4.20%

USD/JPY

159.90

▼ 0.04%

USD/CNY

6.7650

▼ 0.12%

DAX

25,002

▲ 0.23%

CAC

8,290

▲ 0.55%

FTSE

10,398

▲ 0.36%

MIB

50,263

▲ 0.18%

IBEX

18,469

▲ 1.06%

STOXX

626.19

▲ 0.28%

EUR/USD

1.1640

▲ 0.17%

GBP/USD

1.3472

▲ 0.33%

SPX

7,584

▲ 0.41%

DJI

51,562

▲ 1.73%

NDX

30,408

▼ 0.53%

RUT

2,935

▲ 1.45%

TSX

35,217

▲ 1.19%

VIX

15.64

▲ 1.56%

USD/CAD

1.3880

▼ 0.17%

US10Y

4.4770

▼ 0.31%

Venezuela · Economy

Key Facts

—The vote: Venezuela’s National Assembly gave first-reading approval on June 2 to a reform of the electricity law opening the sector to private investment.

—The break: It would end more than 15 years of monopoly by the state-owned utility Corpoelec, created by Hugo Chávez in 2007.

—The scope: Private firms, mixed ventures and minority-state companies could operate across generation, transmission, distribution and commercialisation under long-term concessions.

—The tariffs: The bill foresees rates reflecting the real cost of service, an end to long-standing subsidies, and the operational decentralisation of Corpoelec.

—The caveat: The text still needs a second debate and final ratification; it is not yet law.

RTAsk Rio TimesHave a question about Brazil or Latin America? Get a straight answer from our reporting.Start asking →

After two decades of blackouts under a state monopoly, Venezuela is moving to invite private money back into a power grid that has become one of the biggest brakes on its economy.

A first vote to reopen the power sector

Venezuela’s National Assembly gave initial approval on Tuesday to a reform of the Organic Law of the National Electricity System and Service that would, for the first time in nearly two decades, allow private capital back into the country’s electricity industry. The most significant change is the incorporation of the private sector across generation, transmission, distribution and commercialisation — what lawmakers described as a “diversification of actors in the service chain” — breaking the monopoly held since 2007 by the state-owned National Electric Corporation, Corpoelec. Under the draft, private companies, mixed ventures and firms with minority state ownership could operate alongside the state through long-term concessions, with the joint ventures approved directly by the government rather than by the assembly.

It is important to be precise about where the measure stands: this was a first-reading approval, not enactment. The bill requires a second debate and final ratification in the coming days before it becomes law. But the direction of travel is clear, and the text goes beyond ownership. It also envisions an overhaul of the tariff scheme, with rates that reflect the real cost of service and allow a “reasonable return,” the end of the deep subsidies that have long kept prices artificially low, and the operational decentralisation of Corpoelec itself.

Two decades of blackouts

The reform is a response to a long collapse. Corpoelec was created by decree of the late president Hugo Chávez in 2007, merging state and private power companies and nationalising one of the country’s oldest utilities. A system that had run under a mixed, regionalised model began to falter from a lack of maintenance and new investment. In 2009, a severe drought left the Guri hydroelectric plant — the backbone of a grid that depends heavily on hydropower — at critical levels and ushered in routine rationing. A first major national blackout struck in 2013, leaving most of the country dark for more than a day, and in March 2019 the longest blackout in Venezuelan history lasted six days, crippling water, telecommunications and health services.

Chronic power shortages have since become one of the biggest obstacles to economic recovery. The problem is especially acute for the oil sector, the country’s main source of hard currency: lawmakers backing the bill have argued that rising oil production requires electricity the grid cannot currently supply, and many companies already rely on self-generation to keep operating. Opening the sector to outside capital is, in that sense, aimed as much at unblocking oil output as at keeping the lights on in Venezuelan homes.

Part of a broader opening

The electricity bill is one piece of a wider economic liberalisation that Venezuela has pursued since Delcy Rodríguez became acting president in January, following the removal of Nicolás Maduro from power. The shift marks a notable departure for a government whose predecessors built the state monopoly being dismantled, and it lands at a moment when Caracas is signalling more broadly that it wants private and foreign investment back. For investors, the appeal is obvious — a large market with enormous unmet demand — but so are the risks: a track record of expropriation, sanctions exposure, an untested concession framework, and the simple question of whether a second legislative reading will preserve the opening or dilute it. For now, Venezuela has taken a first formal step toward reversing one of the defining failures of the Chávez-era economy, and the detail of how far it goes remains to be written.

Frequently Asked Questions

What did Venezuela’s National Assembly approve?

A first-reading reform of the electricity law that would open generation, transmission, distribution and commercialisation to private firms and mixed ventures, ending the Corpoelec monopoly.

Is it already law?

No. It passed only a first reading and still requires a second debate and final ratification before taking effect.

Why does the grid need private investment?

Two decades of underinvestment have left the system prone to blackouts, and shortages are a major obstacle to recovery, particularly for the oil sector the economy depends on.

How does this fit Venezuela’s wider policy?

It is part of an economic opening pursued since Delcy Rodríguez became acting president in January, after Nicolás Maduro was removed from power.

Connected Coverage

The electricity opening is one of the clearest signals yet of the economic liberalisation Caracas has pursued since the leadership change in January, as Venezuela seeks to draw private and foreign capital back into strategic sectors.