MercoPress. South Atlantic News Agency

Chavez cancels energy rationing in Caracas; sacks electricity minister

chaotic experience in the capital angered Chavez supporters

Venezuelan president Hugo Chavez cancelled energy rationing in Caracas after a chaotic first day of staggered blackouts angered his supporters, but the measures will continue across the country.

Chavez also for the resignation of Electricity Minister Angel Rodriguez over the badly planned roll-out of the cuts left people stuck in elevators, schools without power and streets without traffic lights.

“To rectify is the way of the wise. I don't want to affect anybody, I have ordered the suspension” of the cuts indefinitely, Chavez said in a late night call to a talk show on state television on Wednesday.

Chavez said some people had suffered two cuts in one day on Wednesday, instead of the rolling four-hour cut that had been planned to hit each neighbourhood once every two days. The cuts caused anger across the city and scared many Chavez supporters in poor neighbourhoods where violent crime is rampant.

The populist president faces a parliamentary election in September when the opposition hopes to dent into his huge majority.

The rationing, which has also been applied to water, is intended to sharply reduce power consumption as Venezuela suffers a severe drought caused by the EL Nino weather anomaly.

Water levels at the giant El Guri dam in the south of the country are at dangerously low levels, officials say, and the country risks a catastrophic loss of power if they keep falling.

However other parts of the country, including oil city Maracaibo, will so far still be subject to the rationing.

Chavez also announced he would be requesting the National Assembly a review of legislation that would enable the Executive to expropriate all those shops and businesses that “speculate with prices”.

The announcement follows a spree of shopping by Venezuelans who fear that the strong devaluation of the Bolivar enforced last week (20% for essentials and 100% for non essentials) will rocket imported goods’ prices.

“I’m going to ask for a modification of the bill which will allow taking over speculators’ shops” said Chavez. The 167 seat National Assembly is overwhelmingly dominated by Chavez party.