Venezuela to reform National Electric System Law allowing private sector participation in generation and distribution

Rodríguez confirmed during the 82nd Annual Assembly of Fedecámaras on October 8 that the electric sector reform will be completed before 2026 closes. The reform will include provisions allowing private companies to participate in generation, transmission and distribution activities previously reserved for state entities. The measure represents a policy departure for Venezuela’s traditionally state-controlled electricity infrastructure, which has suffered chronic service failures particularly in central and western regions.

The government has secured access to replacement parts from Siemens and General Electric, addressing longstanding equipment maintenance challenges. A partnership with China will incorporate 600 megawatts from Unit 6 of Planta Centro specifically targeting grid stability in the most affected areas. The 7,400 megawatt expansion combines these initiatives with other bilateral agreements aimed at addressing Venezuela’s persistent power deficits.

Rodríguez’s address to the business federation included parallel announcements on labor policy and economic restructuring. She instructed the economic team to ensure worker remuneration growth exceeds GDP growth starting in 2027, without specifying whether this applies to base salaries or bonuses. The current minimum wage remains frozen at 130 bolivars since March 2022, equivalent to less than one dollar at official exchange rates, while the integral minimum income stands at 240 dollars through bonuses rather than salary adjustments.

The president also announced a government reengineering process and judicial reform, including new magistrate appointments, though details remain undisclosed. She confirmed that labor consensus discussions between government, employers and workers will yield conclusions and announcements in November. Venezuela has signed 61 hydrocarbon agreements with an additional 44 under negotiation, which the government projects will generate 320,000 direct and indirect jobs over four years across petroleum, gas and related service sectors.

Rodríguez announced advancing Christmas celebrations to November 1 to stimulate economic activity and consumption, continuing a practice initiated by her predecessor Nicolás Maduro, who was captured by U.S. forces in January. The measure aims to boost restaurant, hotel and retail sectors during the final quarter. Non-oil tax collection increased 22.6 percent, and the government plans tax reform to harmonize fiscal burdens across sectors.