Venezuela’s electricity crisis deepens amid blackouts and privatization push

Venezuela’s electrical grid is facing severe strain, with blackouts occurring multiple times a day in many regions, sometimes lasting up to 16 hours. The crisis is exacerbated by the Super El Niño phenomenon, which has raised temperatures, making survival without power even more challenging. Appliances are being damaged, and water supply is disrupted as pumping stations go offline. Authorities have not published rationing schedules, leaving families and businesses unable to plan.

The government recently celebrated a peak electricity demand of 16,424 MW on September 22, calling it a ‘historic milestone.’ However, this figure is significantly lower than the 18,700 MW recorded in 2013, when blackouts were rare. Oil production has risen to 1.23 million barrels per day, but the economic benefits are largely unseen by the Venezuelan population.

Interior Minister Diosdado Cabello acknowledged the crisis but proposed a solution that involves private companies generating their own electricity, which could further strain the agricultural sector’s fuel supply. The industrial sector is losing up to 44% of its productive hours due to blackouts, while the little available energy is prioritized for oil production and the capital region.

The National Electric System (SEN) suffers from structural deterioration, with transmission and distribution systems operating beyond safety limits. US sanctions have worsened the shortage of spare parts, transformers, and cables. The proposed solution is privatization, which could lead to unaffordable electricity bills for the population. Experts estimate that modernizing the grid could cost up to $40 billion.

The recent oil deal with the US involves handing over 17 prime oil fields to NABEP, a company now under Pentagon control. The US will have preferential access to the oil, including 20% at cost. The author warns that past experience suggests such deals do not improve conditions for the Venezuelan people.