Cuba introduces electricity rationing to avoid blackouts

World Today

Cuba’s President Raul Castro has warned the nation of hard times ahead as the island faces shortages of fuel and energy supplies as well as a cash crunch which will affect imports and investments. The government has decided to ration energy to state businesses in order to avoid domestic blackouts.

CCTV America’s Michael Voss has more from Havana.

As Cubans swelter under the summer sun, life for many people is about to get both hotter and harder. State-owned enterprises, from shops to banks and offices, are now without air conditioning for part of each day. Some are also closing early to save energy.

Fuel supplies are being cut by more than a quarter putting pressure on already strained public transport.

In a televised address to the National Assembly, Cuba’s President Raul Castro warned of further hardships since the economic crisis in Venezuela has reduced oil supplies.

The aim of these energy saving measures is to avoid prolonged domestic blackouts not seen since the 1990’s following the collapse of the Soviet Union.

It was oil rich Venezuela’s former leader Hugo Chavez who struck a deal with Cuba’s Fidel Castro to supply all the oil he needed in return for Cuban doctors. But his successor, Nicolas Maduro, faces an economic crisis of his own, and according to reports, shipments of crude oil and refined products have been reduced by 20 percent.

Cuba is also facing a slowdown in its economy, which grew by just one percent in the first half of this year. The government has announced that reduced liquidity will mean postponing investment projects and cutting imports which could mean even less to buy in the shops.