2 weeks Ago
Ecuador's business sectors voiced their concern on Saturday/Sunday about the five-day power outage scheduled for this week in at least three industrial sectors of Quito industrial zones to compensate for the energy shortages affecting the country since September. Ecuador's Energy and Mines Ministry announced on Sunday that blackouts of up to 14 hours would continue next week. The message came one day after authorities reckoned that an increase in power outages was to be implemented after no progress was achieved in increasing the country's electricity-generating capacity given the historic drought affecting the rivers feeding the main hydroelectric power plants.
”The Electricity Regulation and Control Agency (Arconel) will carry out the respective verifications, and distribution companies that are not complying with the established schedules will receive administrative sanctions,” he said. Ecuador currently has a deficit of around 1,000 megawatts to meet its national demand since the country's energy matrix depends on more than 70% of hydroelectric power plants, affected by the worst drought in the last 60 years, as described by the Government. The situation of the reservoirs and flows of the rivers that feed the most important hydroelectric power plants continues to be critical, according to the National Electricity Operator (Cenace), which recommended the increase of power cuts to avoid a collapse in the national system.
Regarding the industrial sector, the Empresa Eléctrica de Quito (EEQ) announced a five-day complete blackout between Nov. 11 and 15 in three industrial sectors of the Ecuadorean capital. Disconnecting industry for 24 hours would profoundly affect employment and the economy of Ecuadorian families.
The industry is not just companies: it's people, citizens, and lives that depend on its stability, Chamber of Industries and Production (CIP) President María Paz Jervis posted on X. This energy crisis is devastating for all Ecuadoreans, without exception, she added. According to the Quito Chamber of Commerce (CCQ), each hour without electricity means losses of US$ 18 million if the service is suspended for five hours a day.
The CCQ estimates that since the beginning of the energy restrictions losses amount to between US$ 3 and 3.5 billion. For example, in the case of small stores and markets, they have had a loss of between 40% and 50% of their sales, which is equivalent to 5 million dollars a day, the guild explained.
Hence, it is essential to protect the sales of the December trade, which represent 15% of annual income, the CCQ went on. The Ministry of Energy and Mines, through a communiqué, informed this Sunday that the increase in power cuts is based on technical considerations and meteorological reports. In addition, it asked the electric service distribution companies to comply with the schedules.
President Daniel Noboa announced Sunday that Government (Interior) Minister Arturo Félix would travel to Colombia to broker an energy purchase. Last week, the Colombian Government of Gustavo Petro, who stands on the political antipodes of Noboa's, announced it will not sell energy to Ecuador until conditions improve..
