Power outages are already a reality in Ecuador. This Friday, October 27, was the first day of the restrictions, which, according to announcements by the authorities, will be in effect until mid-December. Companies and businesses feel the impact for three hours a day without power on the coast and four hours in Sierra and Oriente.

According to the estimates of the Chamber of Commerce of Quito, every hour the commercial sector sells 18 million dollars throughout the country, which in this last quarter of the year means 30% of the total sales of that sector. Energy rationing was announced on Thursday, October 26, by the Minister of Energy and Mining, Fernando Santos Alvite, because the country is not achieving optimal production to cover energy demand due to the dry season. Between Thursday evening and the early morning of Friday the 27th, electricity companies and business units of the National Electricity Corporation (CNEL) published detailed outage schedules for this first day.

Businessmen attribute the power outage to “recklessness of the authorities”

However, while business owners faced the first day of the power outage, problems arose in effectively planning actions to reduce the impact of the outage on their business, which many could not apply on this first day due to uncertainties in the announced dates. One is the case of Morogrillo. Francesca Ferrero, its owner, indicated that the electricity distributors announced that in Samborondón there will be blackouts from 11:00 a.m. to 2:00 p.m., and in central Urdesa from 2:00 p.m. to 5:00 p.m., which are the sectors where it is present. their restaurants.

The outage in Samborondón worried her because it was planned right at lunch time, but it didn’t happen as announced by the power company and instead, the power went out from 9:00 a.m. to 12:00 p.m. “This will save that branch,” said the entrepreneur with relief, but she still had the problem of Urdes. He hoped to confirm the power outage at 2 p.m., so that he could plan the following days with his workers and clients from the next day, although he is not sure that the schedules for the following days will be the same.

“It is the uncertainty of all owners, waiting for the time of the break and the possibility of planning. We are all worried because the cuts are during working hours, during peak hours of production where we will not even be able to receive raw materials, process them, freezers are at risk due to the loss of electricity,” said the businesswoman.

Even having a power plant is not a solution, Ferrero complained, since the branch in Samborondón has a plant, and that is in the shopping center where it operates, and claims that it does not supply enough to be able to provide refrigeration equipment, to turn on air conditioners and provide a complete service.

Meanwhile, in Urdesa, one of the alternatives used by the entrepreneur to mitigate the impact is to divide the day into two parts and close in the middle, i.e. during cutting time (from 2:00 p.m. to 5:00 p.m.), another possibility is to completely we close for the day and open from 5:00 p.m., and we work partially. However, that afternoon shift has already been affected by the perception of insecurity since last August with 35% to 40% less traffic.

“We exclude the impact of November and lose 40% with working hours from 14:00 to 17:00,” added Ferrero.

The Minister of Energy, Fernando Santos, announced the rationalization of energy of 4 hours a day in Sierra and Oriente; and 3 hours on the coast

Now, with this new cut, the entrepreneur has called into question the planning of the season, from October to December, such as hiring partial staff. “It’s hard to decide, it all depends on what happens this weekend and next week,” said Ferrero. Until then, he quotes power generators for his location in Urdesa and hopes the investment won’t exceed $10,000, ensuring he has no choice. “We strive to provide minimum requirements to maintain the operation. The loss of lunch sales in Urdesa would force us to close and reduce the number of employees,” he indicated.

The restaurant union responds to president Guillermo Lasso: There are no excuses that work for us

The Union of Restaurants and Food and Beverage Services that brings together Agrepi (Pichincha Restaurant Association), Asorest (Guayas Restaurant Association), Asocerv (Ecuador Artisan Brewers Association), Buro of the Historic Center of Quito, among others, also expressed concern about power outages just in season on referred to by Ferrero.

“These power outages pose a significant risk to the safety of our products and the continuity of our business. The hospitality industry is affected by serious economic consequences, damage to equipment, and what is even more important, the possibility of endangering the health of our customers due to the lack of electricity supply”, the trade union warns.

With regard to complaints of power outages, on Furthermore, consumption has increased by 15 percent and energy production is insufficient to cover it.” The restaurant union replied to the president: “There are no excuses that work for us, without energy there is no atmosphere, no selling on platforms, paying for useless pay TV services, internet, music, etc. We cannot tell customers to come back for lunch when we have it, we are not factories or large companies with a drive.”

Exporters worried about a new competitive disadvantage

Foreign trade is also feeling the impact. The Ecuadorian Federation of Exporters (Fedexpor) expressed regret that the sector is at a disadvantage due to the power outage. “We express deep concern and dissatisfaction with the sudden announcement of electricity rationalization that will have serious consequences for the entire export production chain, especially in sectors that are highly energy-intensive such as food production and export production,” the union announced.

Power outage schedule in Guayaquil this Friday, October 27

He warned that the lack of electricity supply jeopardizes the continuity of production and deepens the gap that exists between Ecuadorian exports and those competitors in the region that do not face this shortage.

For example, in the banana sector, there would be less impact on farms that work with electricity, which is a minimal percentage, said Richard Salazar, executive director of the Ecuador Banana Marketing and Export Association (Acorbanec). It is expected to have a strong impact on industries that supply banana products such as cartons and the commercial part with exporter offices that can affect the logistics and operational part.