Venezuela cuts power to 80 firms

Venezuela has said it will cut the power for a 24-hour period to 80 firms that have failed to meet electricity usage reduction targets.

Caracas announced the measures on Sunday as part of a nationwide drive to save energy amid rationing to cope with electricity shortages.

The 80 firms did not reduce their power consumption by the required 20 per cent and will have their electricity cut on Monday, the state utility said.

Those companies include hotels, restaurants, car dealerships, gyms and a yacht club, as well as Sony de Venezuela SA, the local arm of the Japanese firm Sony Corp.

Hugo Chavez, the president, had ordered the firms to reduce their consumption by presidential decree.

The decree was made after a severe drought in the country depleted hydroelectric electricity production which provides for more than 66 per cent of the country's power.

Incompetence claims

A statement from the state utility said that if the firms do not reduce their power consumption in the coming weeks they could have their electricity cut for three days and then indefinitely.

The opposition has said that Chavez is to blame for the crisis due to incompetent management of the power sector.

Chavez responded in a newspaper column: "This [opposition] campaign has, of course, one single aim: declare Hugo Chavez guilty of everything, even the drought.

"Indeed, I would love to have the powers I'm accused of by the opposition to defeat this situation which not only hurts Venezuela but the whole world as a result of the destructive voracity of the capitalist system."

Polls show that the issue has caused Chavez's typically high ratings to drop, and it is feared the crisis could affect Venezuela's chances of coming out of recession.

Legislative elections are planned for September and there will be a presidential vote next year.

Source: Al-Jazeera.
Link: http://english.aljazeera.net/news/americas/2010/03/2010321153757542289.html.