Electricity crisis in Cuba: the Díaz-Canel regime will force private companies to generate 50% of the energy they consume

Cuba will force private companies to generate 50% of the energy they consume (AP Photo/Ramón Espinosa)

The Cuban dictatorship, through a decree published in the Official Gazette, established that for 2028 private and foreign companies considered as large consumers must generate the 50% of the energy that they use during peak demand hours.

The measure also applies to self-employed workers, NGOs, state companies and cooperatives who consume a monthly average equal to or greater than 30 megawatt hours o 50,000 liters of fuel.

Among the new restrictions The use of air conditioners is prohibited at temperatures below 24 degrees Celsius in any commercial, state or private establishment, regardless of the level of consumption.

Furthermore, the penalties for failing to comply with these regulations amount to 15,000 Cuban pesos ($625 at the official exchange rate for companies). According to the decree, the dictatorship may activate a “special electrical contingency regime” when generation cannot meet demand. In such cases, electric furnaces will be ordered to stop, refrigeration equipment disconnected and water pumping to homes limited.

Cuba faces an energy crisis that has worsened significantly since August, reaching electricity deficits of more than 50% in the last month. He National Electric System (SEN) suffered two recent total collapses due to lack of fuel and repeated breakdowns of thermoelectric plants with more than 40 years of operation and without adequate maintenance.

Among the new restrictions, the use of air conditioners at temperatures below 24 degrees Celsius is prohibited in any commercial, state or private establishment, regardless of the level of consumption (REUTERS/Norlys Perez)
Among the new restrictions, the use of air conditioners at temperatures below 24 degrees Celsius is prohibited in any commercial, state or private establishment, regardless of the level of consumption (REUTERS/Norlys Perez)

The energy shortage has led to blackouts of up to 20 hours a day in some areas, negatively impacting the economy, which has already contracted 1.9% in 2023, according to official data.

The situation has exacerbated the social unrestvisible in the increase in protests since 2021. The opposition also denounces an increase in repression.

The persecution of activists and opponents continues to be a central issue in Cuba. Berta Soler, who leads the Ladies in White, was detained again for 21 hours this Monday after trying to participate in a march.

Since 2022, members of the movement have been regularly arrested in provinces such as Matanzas, Holguín and Villa Clara.

The group, which received the Sakharov Prize for Freedom of Conscience in 2005, was formed in 2003 during the “black spring” to demand the release of imprisoned dissidents.

Meanwhile, the National Assembly of People’s Power convened its next ordinary session for the December 18. The official call does not mention details about the program for this session – the second of the year as appropriate – but normally the assembly members discuss topics such as an annual summary of the behavior of the economy and projections for the next 12 months.

Berta Soler, who leads the Ladies in White, was detained again for 21 hours this Monday after trying to participate in a march (EFE/Ernesto Mastrascusa)
Berta Soler, who leads the Ladies in White, was detained again for 21 hours this Monday after trying to participate in a march (EFE/Ernesto Mastrascusa)

The call comes at a time when the regime anticipates that the Gross domestic product will suffer another contraction in 2024, after being hit by two hurricanes and two earthquakes that aggravated the situation.

The dictatorship of Miguel Díaz-Canel assures that the recent measures seek “correct distortions” in the economy, but frequent blackouts, inflation and chronic infrastructure investment deficits have left the country without immediate solutions.

Cuba’s economy has been in crisis for more than four years, affected by the lack of domestic production and a financial system without the capacity to sustain the imports necessary to reactivate basic services.

(With information from EFE)

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