President's popularity plunges ahead of elections as drought leads to blackouts and electricity rationing An energy crisis has battered Venezuela's economy and President Hugo Chávez's popularity, prompting severe rationing to avert nationwide blackouts and paralysis. One of the worst droughts in decades has crippled the hydroelectric plants that supply most of Venezuela's power, plunging cities into darkness and forcing industries to go slow and even shut down. The emergency has closed offices, halted escalators and turned off air conditioning, leaving the capital, Caracas, sweltering in 35C heat (96F). Businesses have reported a collapse in sales and employment, which is expected to aggravate a recession already the deepest in South America, and compound the president's woes ahead of legislative elections. Blackouts and rationing have become increasingly frequent since December, prompting an estimated 25% fall in economic activity, according to business leaders. "We feel as if the country is shutting down bit by bit," said Damiano Del Vescovo, head of the chamber of commerce in Valencia. Chávez has told big businesses and government offices to cut energy consumption by 20% and warned of tougher measures to come. "I apologise to all the people who are suffering electricity rationing. But I've said it since the start of the year, we have to do it. It's like being put on a diet, in this case an electricity diet," he said this week. It is feared the rainy season, which typically starts in May, will be too late to avert disaster at the main reservoir, El Guri. "Guri is 13 metres (43ft) away from what they call the level of collapse," Chávez said. "It would just shut down. We would have to close the Guri plants which supply electricity for half of Venezuela. That's the reality." With every dip in the reservoir anxiety rises a notch. Hospitals have reported a rise in numbers seeking psychological help. "I can't take it anymore. It's like an oven. Look at me, drenched and stinking!" said Nazareth Garcia, 27, a civil servant finishing her shift at a Caracas municipal office without air conditioning. Many government offices shut at lunch to try to reach their energy saving quota. Shopping malls which used to open at 7am now open at 11am, a big blow to beauty salons which used to be packed with female customers in the early morning. Several salons have folded. Stores have curbed use of refrigeration and lighting. "They could be bruised for all I know, can't see a thing," grumbled one elderly shopper sifting through a supermarket box of tomatoes in Centro Plaza. Restaurants have reported losses from damaged food and absent diners who do not want to sweat while they eat. Industry appears worst hit, especially car assembly and steel and aluminium plants. Economists expect the economy, which shrank 3.3% last year, to contract again. Inflation, meanwhile, is 24%. One sector which is booming is generators. Hardware shops have sold hundreds in recent weeks, prices ranging from £200 to £1,000. Partly as a result, Venezuela is expected to consume a third more fossil fuels for electricity generation this year. A recent opinion poll found 62% thought the country's situation was negative and 54% had little or no confidence in Chávez. Almost 60% disapproved of the government's handling of the crisis. Critics say the drought would not have been so damaging had there been more investment in power plants. The socialist president has said his Bolivarian revolution – named after liberation hero Simón Bolívar – will falter if he loses legislative elections in September. "The squalid ones are hoping it won't rain," Chávez said, using his usual term for the opposition. "But it's going to rain, you'll see, because God is a 'Bolivarian'. God cannot be squalid. Nature is with us." The government has launched a marketing campaign to educate Venezuelans – Latin America's biggest per capita energy users – about profligacy. The army and local councils are distributing millions of energy-efficient bulbs. Business leaders have urged Chávez to reverse a 30-minute time change ordained in 2007 to give children more daylight to get to school. Moving clocks forward would cut monthly energy use by 800 megawatts, said Noel Alvarez, president of the Fedecamaras business chamber. "[Chávez] must recognise that he made a mistake. He must return to the former time zone. But the government hasn't wanted to do it, so it's currently trying to punish businessmen."Venezuelan energy crisis threatens the Chávez revolution
Friday 12 March 2010
Posts
