Venezuela electricity crisis and energy rationing

Venezuela is facing a severe national electricity deficit, driven by high demand and climate-related factors. Business organizations, including the National Council of Commerce and Services (Consecomercio), have demanded an official, sectorized rationing schedule to mitigate the impact of unpredictable power outages on logistics, food safety, and medicine storage.

Industry leaders noted that while large entities may have self-generation capabilities, approximately 70% of the population relies on small businesses that lack such equipment and are vulnerable to voltage spikes. In response to the crisis, the government has implemented measures to reduce electricity consumption, including limiting the workday for non-essential public sector employees to four and a half hours.

Recent developments show that some regions are experiencing daily blackouts lasting between five and twelve hours. To address the deficit, officials have announced plans to gradually reduce electricity and gas subsidies, using inflation as a reference for tariff adjustments.

While the government attributes the instability to the ‘Super Niño’ climate phenomenon—with demand reaching approximately 15,726 megawatts against a generation capacity of roughly 12,000 MW—opposition leaders, such as Andrés Velásquez of La Causa R, have rejected this explanation. They instead attribute the crisis to systemic corruption and a lack of investment in the national grid. Protests have erupted in states including Carabobo and Lara. To address long-term capacity, the government has signed an agreement with the Argentine company IMPSA to complete the Tocoma hydroelectric plant in Bolívar state.