MercoPress. South Atlantic News Agency

Blackouts in Cuba if companies don’t comply with restrictions

An electricity meter “installation” in Old Havana

The Cuban government has threatened with cutting power to companies and entities that do not comply with the “exceptional measures” which become effective Monday to save fuel and help the rapidly deteriorating island’s economy, aggravated by the current global financial crisis.

Jose Luis Villa, head of Havana’s Economy and Planning office said that all companies, entities and services have a pre-established power consumption plan which must be complied with, to have access to the power grid.

“The government can determine the power cut to those who do not comply who will also have to respond for the deficiencies detected”, said Villa.

Havana is home for 2.2 million of the 11.2 million Cubans and consume a fourth of all the country’s energy, including the residential sector and 26.000 government managed companies, according to official data.

Last week the administration of President Raúl Castro announced “exceptional measures” to reduce power consumption and warned that blackouts are inevitable if saving goals are not achieved.

The plan includes paralyzing all activities which are not involved in public services at 18:00 hour local time. Similarly with leisure parks, while air conditioners can only be used five hours a day and refrigerators must be turned off two hours per day. Bakeries are banned from using electric ovens between 19:00 and 21:00.

Economy and Planning minister Marino Murillo recently stated that the current economic situation and lack of liquidity could only be addressed with “efficiency and savings”. He added that blackouts and brownouts can be avoided in the coming months, “if measures are complied with”.

The government sector electricity consumption must be reduced by 12%, minimum, because excess demand is costing the Treasury 90 million US dollars per month according to Villa.

Cuban media has launched an aggressive campaign calling for power saving while emphasizing “dramatic” news on the global crisis and its impact on the island. Murillo recently stated before the People’s Assembly that growth forecast for 2009 had been reduced from 6% to below 2.5%.

In the first five months of 2009 imports quadrupled Cuban exports according to official data, and tourism, the country’s main source of income together with nickel (which has seen prices plummet) have determined a very precarious financial situation.