MercoPress. South Atlantic News Agency

Lack of rainfall forces energy restrictions in Uruguay

Uruguay moved on Monday into phase II of compulsory energy saving measures since lack of sufficient rainfall has seriously limited hydroelectric generation, the country's main source of energy. However the announced restrictions have resurfaced fears about street crime and the manufacturing industry believes the country is on the edge of an emergency situation.

The lack of water for the hydroelectric system is already costing Uruguay an additional 5 million US dollars per day in dearer imported and fuel generated energy. Director of Energy Ramon Mendez said that these savings are geared "to delay the possibility of a greater problem, we want to limit that risk as much as possible". Anyhow as of next Sunday "Uruguay will be receiving 300 MW from Brazil, although at a higher cost", he added. The package of measures which already apply to the government sector limits the use of buildings' lifts and mechanical stairs to 50%; shop windows, halls, facades, gardens or any other decorative illumination are banned unless safety reasons are involved. Businesses illumination must also be cut by half and all neon signs turned off. Night shows are banned and football matches must begin an hour earlier to make the most of sunlight. Scheduled artistic shows must request additional authorization. A special task force has been named to check measures are complied and to correct anomalous situations. However any reiteration will be punished with progressive sanctions. "Although we must support to prevent more serious situations like energy brown outs, the measures will have an economic impact", said Marcelo Lombardi manager of Montevideo's main bus terminal. "With limited stairs and lifts, movement of people is going to become more difficult", he added. "Less energy means we can't have our shop windows illuminated and this will also mean an increase in the insecurity risk", warned Wilson Amarillo, member of the Downtown Montevideo organization. However "the previous experience of 2006 was positive since security was reinforced, we hope this will be the case, particularly since crime in the last few months has increased in downtown" indicated Amarillo. Diego Balestra, president of Uruguay's Chamber of industries said he was "highly concerned" because the announcements extending to the private sector the energy restrictions mean we are "at the edge of a major emergency situation". "We expect that the ministry is more diligent is approving the installation of generators for industry" added Balestra. The government owned electricity generating and distribution corporation UTE said that the cost of running thermal units on fossil fuel has increased to almost 5 million US dollars per day. A week ago it was 3 million US dollars. UTE vicepresident Pedro De Aurrecoechea reported to the Uruguayan parliament last week that in the four months of 2008, the corporation had spent 277 million of the 340 million US dollars contingent fund which had been earmarked for the whole year. "We're about to exhaust all the 2008 estimated budget for electricity generation in just four months", warned Aurrecoechea. "We'll be forced to increase rates". He also announced that as of next Sunday Brazil will be supplying an additional 300 MW to the existing 70 MW "but the rainfall situation remains extremely serious. Besides some of the thermal units are beginning to register maintenance problems because of their age".