Private entrepreneurs in Cuba are juggling to cope with blackouts on the island

Private entrepreneurs in Cuba are juggling to cope with blackouts on the island
Private entrepreneurs in Cuba are juggling to cope with blackouts on the island

Havana, Jun 29 (EFE).- The energy crisis in Cuba, which is experiencing ups and downs depending on the breakdowns in its obsolete Soviet power plants and the irregular arrival of fuel from abroad, is also taking its toll on the nascent private sector: the more than 10,000 small businesses authorized since 2021.

Since May, blackouts have increased, affecting 40% of the country simultaneously on some days. The president himself, Miguel Díaz-Canel, spoke of cuts of 20 hours a day in some locations.

Even Havana, which the authorities are protecting from the worst of the energy crisis, has had to take measures. Since May, the state-owned Unión Eléctrica (UNE) has divided the capital into blocks and scheduled alternating four-hour blackouts in the mornings and afternoons.

BLACKOUTS AND BUSINESSES

For example, an ice cream shop in Havana has had to reduce its production by up to three quarters in the last two months due to frequent power cuts.

Carla – the fictitious name of the owner, who prefers not to reveal her identity – tells EFE about the problems she faces daily due to the energy crisis on the island, where blackouts are daily, prolonged and, at times, unpredictable.

“I can understand that the State does not have foreign currency to buy oil or to repair thermoelectric plants. But why are those of us who decide to bet on this country with our money left alone?

Carla, despite the headwind, has not lowered the blinds and boasts that the formula for her ice creams makes them withstand the four hours of blackout without melting.

His problem is different: “I make ice cream somewhere else (different from the shop) and when the power goes out I turn on my plant. But it recently broke down and I haven’t been able to find another one. Everyone is buying it now,” he laments.

Day-to-day life has changed for many business owners, who have had to adapt to power outages.

This is the case of Vincent Maillard, a 55-year-old Swiss who has lived in Cuba for two decades and owns a pastry shop in the central Havana neighborhood of Vedado.

To avoid any setbacks, Maillard organizes his ten workers to prepare everything that needs electricity before the outage.

“The luck we have, in quotes, here in Havana is that the blackouts are scheduled. Then we are prepared and it can be organized perfectly well. (Although) it is not ideal,” he tells EFE.

But it’s not always like this. In a small barbershop in the Havana municipality of Playa, Raciel Álvarez, 29, is surprised when the clock strikes 10 in the morning and the fan does not turn off, even though a cut was scheduled.

“We agree, if the blackout starts at 10 in the morning, I try to come with the machines (wireless hair cutting machines) already charged so I can work,” he explains to EFE.

It’s part of how unpredictable the situation can be. For better or worse.

The power outages are not only affecting the private sector. State-owned companies are also suffering from the disruptions and have sometimes had to reduce their production plans. The entire economy is suffering.

The Cuban energy crisis, which is difficult to solve in the short or medium term, is one of the factors that is weighing down the national economy, which contracted by between 1 and 2% last year and remains below 2019 levels.

The pandemic, the tightening of US sanctions and failed economic policies have hit the country, evidencing structural problems in its economy. For four years, the island has suffered from a shortage of basic goods, growing dollarization and rampant inflation.

The Government is counting on the maintenance work it has carried out at the power plants in recent months to enable the country to face July and August, the months of greatest consumption due to high temperatures, in better conditions.

The situation seemed relatively under control at the beginning of the week, but this Thursday the Antonio Guiteras thermoelectric plant, one of the largest, had to be disconnected due to a new failure.

Juan Carlos Espinosa

 
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