Cuba decrees contingency plan, new restrictions as energy crisis deepens
By Nelson Acosta
HAVANA, Nov 28 (Reuters) -Cuba this week asked state and private businesses to generate more of their own electricity from renewable resources and to limit their use of air conditioning, among other conservation measures, as the communist-run government navigates its worst energy crisis in decades.
The new regulations, summarized in a 16-page decree published on Tuesday, give top energy consumers in both the public and private sector three years to install renewable energy sources capable of producing at least 50% of the electricity they consume during daylight hours.
If an office building or factory can't accommodate solar panels, businesses will instead be required to contract with the government for a portion of its installed renewable energy capacity.
The decree also establishes an array of new conservation measures, including a rule prohibiting state and private businesses on the Caribbean island from using "climate control units in non-technological offices, at temperatures below 24C (75.2F)."
The increasingly restrictive measures come as Cuba's electrical grid teeters on the edge of collapse.
Multiple, island-wide blackouts in October and November left millions of people in the dark for days. Rolling blackouts continue nationwide as Cuba struggles to source the fuel and spare parts it needs to generate enough electricity to meet demand.
The government blames U.S. sanctions and a festering economic crisis for the increasingly tense situation.
The decree also establishes protocols for a contingency plan in emergency situations in which it is "necessary to affect electrical service in a planned and sustained manner for more than 72 hours."
In such cases, businesses would be required to disconnect refrigerators, industrial ovens and irrigation pumps during peak demand hours.
The decree dedicates several pages to describing enforcement of the new rules, including shutting off electricity to the businesses that fail to meet the new standards, as well as fines of up to 15,000 pesos ($45.00) or more, depending on the infraction.
Reporting by Nelson Acosta; editing by Dave Sherwood and Bill Berkrot
Latest News
Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.
All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.
Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.
