Venezuela in energy crisis

A combination of under investment, sharply rising demand on the back of government subsidies and dramatically reduced water levels at the Guri dam which supplies the country with 73 per cent of its electricity have conspired to trigger a energy crisis in Venezuela. The government has responded to what it describes as an “emergency situation”.

It’s response has been to enforce harsh levels of electricity rationing on certain sectors, which some sources are being to use to punish capitalist-driven sectors and promote state industries (Wall Street Journal).

The country’s controversial president, Hugo Chavez, has suspended power rationing in Caracas one day after the plan was launched due to unforeseen such as electricity officials cutting power to areas they were not ordered to and unpowered traffic lights causing chaos on the city’s road network (Dow Jones).