Cuba cuts power to energy-wasting enterprises

Cuba cuts power to energy-wasting enterprises

Havana, Jun 2, 2009 (EFE via COMTEX) -- Hundreds of Cuban entities and
state-run companies were sanctioned when a drastic government plan to
save energy entered into force, official media reported Tuesday.

In just the eastern province of Holguin, electricity was cut to 112
workplaces of various firms operated by the only communist government in
the Americas, the media reported.

The energy cutbacks were implemented due to excesses in consumption or
because the firms and government offices did not yet have their fuel
savings plan developed.

Holguin last month consumed 18 percent more electricity than predicted.

Authorities and official media warned in recent weeks the heads of firms
and institutions that they will be severely sanctioned if they do not
comply with the power savings plans.

Gen. Raul Castro's government announced last week "exceptional measures"
for reducing the consumption of electricity and warned of a return to
blackouts if the goal isn't achieved.

The plan includes closing at 6:00 p.m. all enterprises that do not
provide goods or services directly to the public.

Amusement parks will also cut back on the hours they are open, the use
of air conditioning will be limited to five hours a day, and cold
storage facilities will be disconnected for two hours a day.

The use of electric ovens is banned from 7:00 to 9:00 p.m. in bakeries
and some industries, while sanctions on consumers committing fraud will
be increased.

In addition, transportation services were reduced, with cancellations of
schedules, routes and frequencies of service, while in the business
sector the growing power supply shortage is evident.

Cuba receives from oil-rich ally Venezuela about 100,000 barrels of
crude each day on preferential terms, but officials say the government
doesn't have the cash to acquire more fuel on the open market.

Economy and Planning Minister Marino Murillo said recently that the
critical economic situation and lack of liquidity can be eased "only
with efficiency and saving."

He warned that the 6 percent economic growth projected by the government
for 2009 "will not be achieved," and that now the gross domestic product
is expected to expand by no more than 0.5 percent.

The Cuban economy deteriorated over the last year because of three
hurricanes causing losses of $10 billion, the increase in import prices,
the drop in exports and the reduction of revenues from tourism and
remittances.

Cuba imports more than 80 percent of the food its 11.2 million citizens
consume. EFE

am/bp