OIL GIANT VENEZUELA RATIONING ELECTRICITY

Venezuela announces nationwide energy rationing
Fabiola Samchez, January 12, 2010 (AP via Yahoo News)

"Venezuela's government imposed rolling blackouts of up to four hours every other day throughout the country… to combat an energy crisis.

"President Hugo Chavez has said rationing is necessary to prevent water levels in Guri Dam — the cornerstone of Venezuela's energy system — from falling to critical lows and causing a widespread power collapse. Drought has cut the flow of water into the dam, which feeds three hydroelectric plants that supply 73 percent of Venezuela's electricity…Rolling blackouts will begin in the capital of Caracas [until seasonal rains return the power supply to normal]…"

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"Government officials had already imposed some cuts…[It] recently reduced the hours of electricity supply for shopping centers and required businesses and large residential complexes to cut energy use by 20 percent or face fines…Chavez's government has also partially shut down state-run steel and aluminum plants…[and] many public employees will have shorter workdays…[but the Caracas subway, hospitals, media outlets and public institutions that tend to the public would not be affected]…

"Some parts of the country have already been enduring unplanned blackouts for months, as demand has outstripped the electrical supply. The energy output from the Guri Dam's three hydroelectric plants has also declined below its normal capacity."

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"The increased rationing will help cover a 12 percent gap between energy supply and demand, due to the situation at Guri and at some thermoelectric plants that are operating below capacity…[W]ater levels at the dam in southeastern Venezuela have dropped drastically as a result of the El Nino weather phenomenon in the Pacific Ocean…[T]here has been particularly little rain in southeastern Venezuela, where the watershed that feeds Guri is located…

"Chavez's critics say his government is to blame because it has failed to complete enough power upgrades to keep up with increasing demand despite Venezuela's bountiful oil earnings…The socialist leader played down the criticism during an evening telephone interview aired on state television. But Chavez conceded that opposition leaders could use the rationing issue against him as they gear up for congressional elections in September…"