XM does not provide services to residents of the United States of America.

Cuba making slow progress re-starting power after second grid collapse



<html xmlns="http://www.w3.org/1999/xhtml"><head><title>UPDATE 2-Cuba making slow progress re-starting power after second grid collapse</title></head><body>

Grid collapse follows previous day's outage, affecting over 10 million people

Government blames blackouts on infrastructure, fuel shortages, and rising demand

US trade embargo and sanctions cited as factors in fuel and parts shortages

Updates with progress on grid restoration in first paragraph, hurricane threat paragraph 13, comment from Cuba foreign vice minister paragraphs 15-16; comment from Havana resident paragraphs 22-23

By Dave Sherwood

HAVANA, Oct 19 (Reuters) -Cuba's government said on Saturday it had made some progress in gradually re-establishing electrical service across the island, including to hospitals and parts of the capital Havana, after state-run media earlier reported the national grid had collapsed for a second time in 24 hours.

Most of Cuba's 10 million people, however, remained without electricity on Saturday afternoon.

Traffic lights were dark at intersections throughout Havana, and most commerce was halted. Long lines formed at state-subsidized shops where Cubans purchase bread and other staples.

The country's top electricity official, Lazaro Guerra, said grid operator UNE was working to raise enough capacity in the system to start several power plants and restore electricity to larger swathes of the country.

"I cannot assure you that we will be able to complete linking the system today, but we are estimating that there should be important progress today," Guerra said on a TV newscast.

CubaDebate, one of the island's state-run media outlets, said on social media Saturday morning that UNE had reported another grid collapse.

Guerra has not directly confirmed the second total collapse and referred instead to a smaller, more localized setback, creating confusion as to what had happened.

Cuba's electrical grid first failed around midday on Friday after one of the island's largest power plants shut down.

Even before the grid's collapse, an electricity shortfall on Friday had forced the Communist-run government to send non-essential state workers home and cancel school for children as it sought to conserve fuel for power generation.

Lights began to flicker on in pockets of the island early Friday evening, offering hope that power would be restored.

Cuba's government has blamed weeks of worsening blackouts - often as long as 10 to 20 hours a day across much of the island - on deteriorating infrastructure, fuel shortages and rising demand.

Strong winds that began with Hurricane Milton last week had also complicated Cuba's ability to deliver scarce fuel from boats offshore to feed its power plants, officials have said.

Hurricane Oscar, north of the Dominican Republic, threatened to bring heavy rains and strong winds to parts of northeastern Cuba in the coming days, the U.S. National Hurricane Center said.

Cuba also blames the U.S. trade embargo, as well as sanctions under former President Donald Trump, for ongoing difficulties in acquiring fuel and spare parts to operate and maintain its oil-fired plants.

"There are those who sing victory and join the ambition of seeing Cuba on its knees with the interruption of the electrical system," said foreign vice minister Carlos Fernandez de Cossio on X on Saturday.

"They support the ruthless U.S. aggression ... We respond with the talent and commitment of our (grid) workers and executives."

The United States on Friday denied any role in Cuba's grid collapse.


FUEL WOES

Cuban officials have said even if the immediate grid collapse is resolved, the electricity crisis will continue.

Cuba produces little of its own crude oil, and fuel deliveries to the island have dropped significantly this year, as Venezuela, Russia and Mexico, once important suppliers, have reduced their exports to Cuba.

Ally Venezuela slashed by half its deliveries of subsidized fuel to Cuba this year, forcing the island to search for more costly oil on the spot market.

Some Cubans, accustomed to hardship, said they were taking the crisis in stride.

René Duarte, 60, strolled through Old Havana on a rainy Saturday morning to get fresh air, he said, after a night of little sleep.

"We're used to taking everything in stride, because we have no other choice," he said.

Following Hurricane Ian in September 2022, Cuba's grid collapsed, leaving the entire country without power for several days.

Authorities eventually re-established service, but not before protests broke out in various cities, including Havana.



Reporting by Dave Sherwood in Havana; additional reporting by Nelson Acosta, editing by Diane Craft and Rod Nickel

</body></html>

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.

Risk Warning: Your capital is at risk. Leveraged products may not be suitable for everyone. Please consider our Risk Disclosure.