Venezuelan lawmakers have approved private power generation to address an electricity shortfall that leaves much of the country facing prolonged blackouts, as state output trails demand, AFP reported.
The unanimous Tuesday vote allows private operators to generate electricity and supply it for a set charge, National Assembly leader Jorge Rodriguez said. He said the change should increase supply.
AFP cited expert estimates that the state utility generates around 12,000 megawatts, while electricity demand reached 16,400 megawatts in September. AFP linked the shortages partly to years of underinvestment and mismanagement after the power system was nationalized in 2007.
The outlet reported that prolonged outages affect much of Venezuela, including parts of Caracas. Lawyer Nuris Medina, 66, who lives outside the capital, said the power goes out at her home every day.
Rodriguez said the state-owned power company would continue subsidizing electricity for the most vulnerable. Opposition lawmaker Antonio Ecarri told AFP the reform was necessary “in the face of collapse.”
The electricity measure follows steps to open Venezuela’s oil and mining sectors to private investment. EconoTimes has covered a separate hydrocarbons-law route for Venezuela-based firms to work upstream. AFP also reported that U.S. Energy Secretary Chris Wright said oil production needs reliable electricity and pointed to a five-year plan to reuse existing infrastructure.
