The Venezuelan government announced Monday that it will raise the price of power generation by as much as 200 percent after a failure at the country Tablazo power plant in Zulia left five states in western Venezuela without power this past Saturday. The higher prices will be used to counter demand while supply is constrained.
For individuals or households that consume more than 20 percent of the power they consumed in 2009 by the July 15 deadline, power costs will jump threefold.
The decision by Venezuela's electricity ministry will make 2011 the second consecutive year of restrictive power consumption in the country. Power generation and distribution has been an ongoing problem for the country after a drought in 2010 nearly halted production of one of Venezuela's hydroelectric plants. Following last year's drought, the government reduced steel production in the country and imposed rolling blackouts.