CubaHeadlines

Cuban Government Plans Higher Energy Tariff for Private Sector: "They Are Major Consumers"

Friday, October 18, 2024 by Isabella Rojas

On Thursday, Cuba's Prime Minister, Manuel Marrero, announced an impending increase in electricity rates for the non-state sector, which currently enjoys residential pricing. "Within the residential sector, non-state management forms have grown, many of them being high consumers benefiting from subsidized rates without a plan. We are working to find a solution to this," stated the Cuban official.

While Marrero did not provide specific details on the "plan," he mentioned that the new rate would surpass the residential one and that the government aims to implement it before year-end. The Prime Minister also emphasized that the plan would enforce energy efficiency standards for private businesses.

Addressing Rising Electricity Demand

Alfredo López, director of the Unión Eléctrica (UNE), highlighted that around 100,000 air conditioners have been imported into Cuba over the past year, resulting in a surge in electricity demand. These cooling devices are used both domestically and in private businesses. López suggested ways to ensure private individuals consume electricity efficiently, such as setting temperature limits on air conditioners.

López and Marrero also discussed encouraging the adoption of solar panels. "We must increasingly stimulate investment in renewable energy systems, including photovoltaic solar panels that generate and store electricity in batteries. This needs to be a requirement," López asserted.

Urgent Measures Amid Energy Crisis

During an unusual televised appearance focused on the "energy emergency," Marrero and López reiterated the necessity for exceptional measures targeting both demand and consumption. Cuba recently experienced its highest rate of electrical disruption this year, with the Unión Eléctrica reporting outages amounting to 1,642 MW, slightly below the forecasted 1,678 MW but still a record during the ongoing energy crisis.

Cuba's electrical grid remains in a precarious state, plagued by frequent outages due to power plant failures or maintenance. This is compounded by a fuel shortage stemming from the government's lack of foreign currency to import it. In an effort to mitigate the crisis, the Cuban government has rented several floating power plants in recent years. Although these provide temporary relief, they are expensive and do not address the systemic issues plaguing the national energy infrastructure.

The Unión Eléctrica de Cuba released a statement outlining measures taken due to the country's electrical emergency. Effective immediately, these measures include suspending non-essential services.

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