The Ecuadorian industry was surprised by a ten-hour blackout over the weekend. The statement from the Government of Daniel Noboa was known through social networks, just outside the implementation of the measure. This desperate decision comes in the midst of an energy crisis due to the arrival of the dry season, which begins in June and extends in some regions until March. “This industrial blackout is not the solution to Ecuador’s problem,” said Francisco Jarrín, president of the Guayaquil Chamber of Industries, who warns that the sector loses 12 million dollars for every hour without electricity.
The blackout already affects the Azuay and Tungurahua industrial park, damaging around 265 factories that have not been able to operate normally. “We don’t know why the industrial park was chosen,” questions María Paz Jervis, representative of 153 productive unions that are grouped together in the Ecuadorian Business Committee, who criticizes the Government’s handling of the energy crisis. “We found out on Saturday through WhatsApp and X,” he adds, and half an hour later, the cuts were carried out without further notice. A few days before the industry blackout, the Government announced that it would reduce the hours of electricity cuts to citizens, despite the fact that the figures for the level of the rivers that feed the hydroelectric plants had not improved and remained at a limit of risk that could even lead to the stoppage of operations.
The statement from the national electricity operator, Cenace, reveals that the measure for the industry is an order from the Presidency, intended to comply with the commitment to reduce electricity cuts that have affected the image of the president, who is seeking re-election in 2025. The document tells electricity distributors to apply 100% cuts to the industrial sector, between 08:00 and 22:00, for 15 days, to recover the reserves of the Mazar reservoir and avoid massive blackouts.
The management of the energy crisis has become the main enemy of the Government. From the beginning, the power outages have been carried out without prior notice, despite the speeches of government spokespersons who assured that there would be no electricity outages and asked citizens not to see everything in a negative way. “Dialogue is the opening to make decisions. If we are informed in dribs and drabs, predictability becomes a bigger problem,” says Jervis.
A week ago, the Government had already asked the industrial park to turn on its electrical generators. This measure was not consensual; was communicated through a message urging the generators to be turned on at maximum 24 hours a day, thus reducing demand on the national system and promising compensation for this. However, there are legal impediments that were consolidated with the law that the Government baptized as “no more blackouts”, which was sent to the Assembly in January, just a few months after assuming power, in the midst of the severe energy crisis caused due to the worst drought since 1950. Taking advantage of the honeymoon with other political parties in the Legislature, the law was approved unanimously, but it limits the capacity of the industrial sector to generate its own electrical energy. In addition, there are problems with the supply of diesel necessary for the operation of the generators.
“Transparency in crisis management is essential for everyone. We need a minimum planning of at least three months. If this extends until December or more, we must know,” demanded Felipe Rivadeneira, representative of Ecuadorian exporters. The business union has proposed to the Government the suspension of the industry blackout, the immediate creation of a crisis committee in which the private sector is considered and the formulation of informed solutions. In addition, they request a plan for power outages of at least three months. The union reiterated that the industrial blackout is inapplicable and warns that there could be a shortage of products and difficulties in maintaining jobs in a country in recession, where 70% of Ecuadorians of working age are unemployed or in the informal sector. .
90% of the electricity generated by Ecuador comes from hydraulic sources; However, currently, hydroelectric plants are only supplying 65% of energy demand. An attempt is being made to make up for this deficit with thermoenergy, but the crisis has worsened following Colombia’s decision not to export electricity, with the aim of protecting its reserves.
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