Venezuela's parliament unanimously approved a law on Tuesday opening the electricity sector to private investment for the first time in 19 years.
The vote on November 10 ended the state monopoly created when the sector was nationalized in 2007. The reform passed without a single vote against. Parliament president Jorge Rodríguez said private companies will be able to "produce" and supply electricity "at a set price." The reform aims to increase available energy and meet demand.
Much of Venezuela faces frequent, hours-long blackouts. The opposition says the sector suffered from lack of investment, corruption and infrastructure mismanagement since the 2007 nationalization. These weaknesses led to production shortfalls and outages across almost the entire country.
The reform is part of a broader program by interim President Delcy Rodríguez, the sister of parliament president Jorge Rodríguez. She has complied with Washington's calls to open nationalized industries since US forces ousted Nicolás Maduro in January. The ouster followed a military operation in Caracas. Similar laws have already opened the oil and mining sectors to investment.
The country urgently needs to boost power capacity. It must end blackouts, meet household and business demand, and support the oil industry's recovery.
