Economic Sector Faces Scrutiny Amidst Cuba's Energy Crisis

Tuesday, May 21, 2024 by Madison Pena

Economic Sector Faces Scrutiny Amidst Cuba's Energy Crisis
Former spy Gerardo Hernández visits SME in Old Havana - Image from © Facebook / Gerardo de Los Cinco

The energy crisis that is keeping the administration of the ruling Miguel Díaz-Canel on edge has led the leaders of the province of Matanzas to implement measures targeting the electricity consumption of the "non-state economic sector" (entrepreneurs and self-employed workers). This was reported by Periódico Girón on their social media, indicating that the measures adopted in the extraordinary Energy Council meeting held this Monday aim to address the energy deficit in the province, amidst the complex energy situation the country is experiencing.

Meanwhile, official journalist José Miguel Solís, reporter for Radio Rebelde in Matanzas, noted on his social media that the measures "will be taken at the national level," and highlighted that "among the initiatives to be implemented is the regulation of consumption in the non-state economic sector."

"For this, they must set a plan that aligns with the current context. It will be reviewed that many of these actors should pay their energy expenses according to the stipulated rate for the non-residential private sector but adhere to the residential sector, which is less demanding. Priority will be given to these two tasks, and a control system must be applied," indicated the media of the Communist Party (PCC) in Matanzas.

During the meeting, the first secretary of the PCC in Matanzas, Mario Sabines Lorenzo, stated that the electric deficit is "the main concern of the people" and called to "adopt all available solutions."

Measures to Address the Energy Crisis

Besides the non-state economic sector, the authorities will implement measures for "non-essential state institutions," which will disconnect on weekends as long as it does not affect "production, communications, and other sectors." Administrative measures, promotion of teleworking, rearrangement of workspaces, among others, will be adopted "to mitigate waste."

Solving water pumping with electric generators that supply electricity during blackouts and "monitoring those state entities that exceed the energy plans set for them" are part of the package of measures, according to the cited media.

"Promoting recreational, cultural, and sports activities as a way to mitigate leisure time during annoying blackouts" is part of the government's strategy to face "the complex energy situation."

Improving and expanding communication is another objective of the plan presented by Sabines Lorenzo, who also "emphasized the importance of saving to provide the population with restful nights and peaceful days."

On August 19, 2021, the Cuban government approved three resolutions affecting the hiring, tax, and financial regime of micro, small, and medium-sized enterprises (Mipymes): Resolution 111/2021 of the Ministry of Communications, Resolution 350/2021 of the Ministry of Finance and Prices, and Resolution 351/2021 of the same ministry.

A series of articles published by economist Elías Amor dissected the fine print of these regulations. According to Amor, for services such as electricity, telephone, gas, water supply, and sewage, among others, Mipymes will establish contracts with the relevant institutions, where the conditions of their provision will be agreed upon, and the rates will be determined according to the prevailing regulations.

Three years after the legal framework for Mipymes was approved and amid an acute energy crisis in the country, the Cuban regime's authorities consider it essential to review the legislation to "face the energy deficit," focusing on the "non-state economic sector."

This turn of events constitutes an excellent case study for those interested in the legal security that the communist regime, which has ruled Cuba for more than 60 years, offers to private enterprise.

Addressing the Energy Crisis in Cuba

Here are some frequently asked questions to provide a better understanding of the measures being taken to address the energy crisis in Cuba.

What measures are being implemented to address the energy deficit in Matanzas?

Measures include regulating the energy consumption of the non-state economic sector, disconnecting non-essential state institutions on weekends, promoting teleworking, and rearranging workspaces to mitigate waste.

How will the non-state economic sector be affected by these measures?

The non-state economic sector will have a set plan for energy consumption that aligns with the current context. Many will need to pay energy expenses according to the non-residential private sector rate, which is more demanding than the residential sector rate.

© CubaHeadlines 2024

Continue in App

For a better experience, continue in our app.

Download App