Tag Archives: Electricity

Once oil wealthy, Venezuela’s largest state struggles to keep the lights on

Elizabeth Altuve climbs the stairs at the occupied building where she lives in Maracaibo, Venezuela July 26, 2018. Picture taken July 26, 2018. REUTERS/Marco Bell

By Mayela Armas

MARACAIBO, Venezuela (Reuters) – Across Maracaibo, the capital of Venezuela’s largest state, residents unplug refrigerators to guard against power surges. Many only buy the food they will consume the same day. Others regularly sleep outside.

Judith Palmar holds her mother Sibilina Caro hand after feeding her at their home in Maracaibo, Venezuela July 25, 2018. Picture taken July 25, 2018. REUTERS/Marco Bello

Judith Palmar holds her mother Sibilina Caro hand after feeding her at their home in Maracaibo, Venezuela July 25, 2018. Picture taken July 25, 2018. REUTERS/Marco Bello

The rolling power blackouts in the state of Zulia pile more misery on Venezuelans living under the fifth year of an economic crisis that has sparked malnutrition, hyperinflation and mass emigration. OPEC member Venezuela’s once-thriving socialist economy has collapsed since the 2014 fall of oil prices.

“I never thought I would have to go through this,” said bakery worker Cindy Morales, 36, her eyes welling with tears. “I don’t have food, I don’t have power, I don’t have money.”

Zulia, the historic heart of Venezuela’s energy industry that was for decades known for opulent oil wealth, has been plunged into darkness for several hours a day since March, sometimes leaving its 3.7 million residents with no electricity for up to 24 hours.

In the past, Zulians considered themselves living in a “Venezuelan Texas”, rich from oil and with an identity proudly distinct from the rest of the country. Oil workers could often be seen driving new cars and flew by private jet to the Dutch Caribbean territory of Curacao to gamble their earnings in casinos.

Once famous for its all-night parties, now Maracaibo is often a sea of darkness at night due to blackouts.

The six state-owned power stations throughout Zulia have plenty of oil to generate electricity but a lack of maintenance and spare parts causes frequent breakdowns, leaving the plants running at 20 percent capacity, said Angel Navas, the president of the national Federation of Electrical Workers.

Energy Minister Luis Motta said this month that power cuts of up to eight hours a day would be the norm in Zulia while authorities developed a “stabilization” plan. He did not provide additional details and the Information Ministry did not respond to a request for comment.

The Zulia state government did not respond to a request to comment.

People block a street in protest during a blackout in Maracaibo, Venezuela July 26, 2018. REUTERS/Marco Bello

People block a street in protest during a blackout in Maracaibo, Venezuela July 26, 2018. REUTERS/Marco Bello

Although Caracas has fared far better than Maracaibo, a major outage hit the capital city on Tuesday morning for around two hours due to a fault at a substation. The energy minister said “heavy rains” had been reported near the substation.

Venezuelans were forced to walk or cram into buses as much of the subway was shut. Long lines formed in front of banks and stores in the hopes power would flick back on. The fault also affected some phone lines and the main Maiquetia airport just outside the capital.

“This is terrible. I feel helpless because I want to go to work but I am in this queue instead,” said domestic worker Nassari Parra, 50, as she waited in a line of 20 people in front of a closed bank.

MARACAIBO “GHOST TOWN”

Retiree Judith Palmar, 56, took advantage of having power to cook one afternoon last week in Maracaibo.

When the lights do go out, Palmar wheels her paralyzed mother outside because the house becomes intolerably hot. One power cut damaged an air conditioning unit, which Palmar cannot afford to replace on her pension of about $1.50 a month due to inflation, estimated by the opposition-run Congress in June at 46,000 percent a year.

Outages are taking a toll on businesses in Zulia.

Zulia used to produce 70 percent of Venezuela’s milk and meat but without power to milk cows and keep meat from spoiling, the state’s production has fallen nearly in half, according to Venezuela’s National Federation of Ranchers.

Zulia’s proportion of Venezuela’s total oil production has also slipped over the past 10 years from 38 percent to 25 percent, figures from state oil company PDVSA show.

Maracaibo, Venezuela’s second largest city, seems like a “ghost town,” said Fergus Walshe, head of a local business organization. He said businesses had shortened their operating hours due to the lack of power.

“Before, business activity here was booming,” he said.

Small businesses are also affected. In an industrial park in Maracaibo’s outskirts, 80 percent of the 1,000 companies based there are affected by the power cuts, according to another business association in Zulia.

Sales at Americo Fernandez’ spare parts store are down 50 percent because card readers, which are crucial because even the cheapest goods require unwieldy piles of banknotes, cannot be used during power cuts.

“I have had to improvise to stay afloat. I connect the car battery to the store so that the card readers can work,” Fernandez said during a power outage at his home, surrounded by candles.

(Reporting by Mayela Armas in Maracaibo, additional reporting by Andreina Aponte and Shaylim Castro in Caracas; Writing by Alexandra Ulmer; Editing by Lisa Shumaker and Alistair Bell)

As Hodeidah battle grinds on, residents suffer lack of clean water, electricity

A displaced boy from Hodeidah city carries his brother who is affected by monoplegia, at a school where displaced people live, in Sanaa, Yemen June 22, 2018. REUTERS/Mohamed al-Sayaghi

By Dahlia Nehme

DUBAI (Reuters) – Residents unable to flee Hodeidah face constant bombardment, lack of clean water and power cuts as an Arab coalition battles to capture Yemen’s main port from Iran-aligned Houthis.

“We hear loud explosions all the time,” Assem Mohammed, a 30-year-old pharmacist, said by telephone.

“We haven’t had water for three days.”

Mohammed, with his wife and six-month-old daughter, are among a dwindling number of residents who have remained in Hawak district, a neighborhood sandwiched between the airport, captured this week by the coalition, and the sea port, the latest target of the military offensive.

Whether through lack of funds or work or personal commitments, some families like Mohammed’s cannot escape.

Drivers transporting fleeing residents out of Hodeidah have more than doubled their fares since the battle began, while the hospital where Mohammed works has threatened employees with dismissal if they are absent for long periods.

“Electricity has also been cut in most of the city since three days, and in some neighborhoods for a week,” he said. He blamed the water shortage on damage to pipes that relief workers say has been caused by the Houthis digging trenches. Houthi officials could not immediately be reached for comment.

Since 2015 Hodeidah residents have used privately-owned generators to produce electricity. But this month’s offensive has left them struggling to obtain the necessary diesel oil.

Temperatures during summer in Yemen soar to above 40 degrees Celsius (104 F) in the shade, which along with lack of clean water could help spread disease.

Coalition leaders Saudi Arabia and the United Arab Emirates have pledged a swift operation to capture the Red Sea port, without entering the city center to minimize civilian casualties and maintain a flow of essential goods.

But its maritime port is a principal entry point for Yemen’s relief supplies, and the United Nations fears heavy fighting will worsen what is already the world’s most urgent humanitarian crisis, with 22 million Yemenis dependent on aid and an estimated 8.4 million believed to be on the verge of starvation.

A displaced woman from Hodeidah city carries her sick daughter at a school where displaced people live, in Sanaa, Yemen June 22, 2018. REUTERS/Mohamed al-Sayaghi

A displaced woman from Hodeidah city carries her sick daughter at a school where displaced people live, in Sanaa, Yemen June 22, 2018. REUTERS/Mohamed al-Sayaghi

“The level and degree of human suffering is heart-breaking,” Lise Grande, the U.N. humanitarian coordinator for Yemen said on Thursday. “Of all the things we are worried about, cholera is top of the list.”

“It wouldn’t take much to start an unstoppable outbreak.”

Dozens of displaced families have been relocated to schools in the city, Mohammed Kassem, Hodeidah ICRC system manager, told Reuters as relief workers distributed food bags at one facility.

“We ran away only with the clothes we were wearing,” said one woman while waiting to receive her share.

The coalition says it wants to prevent the Houthis receiving weapons and generating cash from imports, eventually forcing them to start talks on handing over power to the internationally recognized government of President Abd-Rabu Mansour Hadi.

UN CONCERNED

Grande warned against cholera spreading “with lightning speed” if the water system breaks down and nothing is done to immediately address the situation.

U.N. officials estimate that in a worst-case scenario the fighting could cost up to 250,000 lives, especially if a cholera epidemic occurs in the widely impoverished region.

The Arab coalition intervened in the war in 2015 to roll back Houthi control of Yemen’s main population centers and reinstate its internationally recognized government. Coalition forces retook much of the south before the war, widely seen as a proxy conflict between Saudi Arabia and Iran, bogged down.

Tens of Hodeidah families have fled the fighting in Hodeidah for safety in the Houthi-held capital Sanaa, while others have headed to Raymah and Wusab, also in Houthi-ruled areas inland.

“They told us there’s an organization where we can register as refugees over here, but God knows,” said Marwan al-Barah, one of those displaced from Hodeidah.

In a Sanaa school, Reuters TV footage showed men who had fled Hodeidah queuing to register their families as displaced, while women sat on the floor in classrooms as their bare-foot children and toddlers played nearby.

(Reporting by Dahlia Nehme; Editing by Sami Aboudi, William Maclean)

In Puerto Rico, a new hurricane season threatens the elderly

An elderly woman prays at a chapel of the San Rafael nursing home in Arecibo, Puerto Rico February 14, 2018. Picture taken February 14, 2018. REUTERS/Alvin Baez

By Nick Brown, Jessica Resnick-Ault and Ricardo Ortiz

ADJUNTAS, PUERTO RICO (Reuters) – At 84 years old and battling cancer, Israel Gonzalez Maldonado has lived without electricity for the nine months since Hurricanes Irma and Maria devastated Puerto Rico.

His wife, Zoraida Reyes, 77, struggles to keep the house stocked with fresh food without a refrigerator. At night, she fans her husband so he can sleep.

With another hurricane season starting, older Puerto Ricans have little to protect them from another storm on an impoverished island that remains far from fully recovered. Younger and wealthier people have been moving away for years, leaving an older and sicker population in the hands of an underfunded healthcare system. Tens of thousands more have fled since Maria.

“We wish we could move, at least for the time he has left,” Reyes said of her husband.

Senior citizens make up a larger share of the population here than in all but four U.S. states, according to federal Census data. About half are disabled, more than any state.

Forty percent of seniors rely on food stamps, more than three times the percentage in New York state, the second-highest nationally.

Yet the island has just six nursing homes – with a total of 159 beds – that are certified by the U.S. Centers for Medicare and Medicaid (CMS) to provide rehabilitative services.

Puerto Rico relies instead on a patchwork of about 800 nursing homes licensed by the island’s Department of Family. They are typically private businesses or nonprofit organizations that care for small numbers of elderly people with limited services – and limited budgets, strained further since Maria.

A fragile healthcare system is hardly the only problem that leaves the elderly here – and all Puerto Ricans – vulnerable to another catastrophic storm.

About 7,000 houses and businesses still lack power, after Maria leveled a grid that was ill-maintained before the storm. Power utility PREPA has patched together most of the system but remains years away from making the fundamental improvements needed to enable it to withstand another hurricane.

“The grid needs to be rebuilt – not just the lines,” PREPA Chief Executive Walter Higgins said.

Maria also damaged nearly half the island’s levees. Several major water pumps, used to remove floodwater, remain in disrepair.

“God help us, but we definitely can’t handle any more hurricanes,” said Tania Vazquez, the island’s secretary of natural resources.

Governor Ricardo Rossello’s office declined to comment on the island’s hurricane preparedness or on specific efforts to protect the elderly, referring questions to other agencies.

Glorimar Andujar, Secretary of the Department of Family, said officials learned a lot from Maria about how to prepare for the next storm.

“The emergency plans are much better,” Andujar said, “because we now have an experience that no other generation of agency leaders have experienced.”

ELDERLY AT RISK

Rosa Iturrizaga runs Hostal de Amigos, a small eldercare residence in San Juan.

The home barely broke even before Maria, relying on resident fees of between $2,000 and $3,000 a month. Since then, two of 11 residents moved to the mainland, and insurance has so far not paid for about $40,000 in storm damage, Iturrizaga said. The business carries $500,000 in debt, has fallen behind on loan and tax payments and now loses up to $5,000 a month.

“I don’t know what’s kept me going,” Iturrizaga said. “I love doing this, but I’m looking at other things to do with the land.”

Another private home, the nonprofit Asilo San Rafael in Arecibo, theoretically charges residents $1,200 a month; in reality, only three of 27 residents pay full price, and at least nine pay nothing, said board member Lucila Oliver.

Operating costs run about $700,000 annually, with about $110,000 coming from a handful of subsidies from the island’s central government – subsidies she says have declined sharply in recent years as the now-bankrupt Puerto Rican government fell into a fiscal crisis, Oliver said.

The Department of Family’s Andujar disputed that the subsidies have declined, but Oliver provided Reuters with balance sheets showing a drop in department funding to $59,000 this fiscal year from $80,000 last year.

Maria brought new costs: about $1,200 a month to bring in water tanks, and thousands more on diesel for generators. Oliver said San Rafael is “used to living on the edge,” but says the edge has drawn closer since the hurricanes.

Many elderly and disabled here find a way to get by at home, with little care. Some seek help from the Department of Family, applying for a caregiver to come by just a day or two a week, said Andujar.

Many are turned away, she said.

“The funding is very limited,” she said, “and the need is very big.”

PREPARING FOR ANOTHER HIT

This hurricane season, the department is making sure it has accurate locations for all licensed nursing homes after cell phone service disruptions stymied the response to Hurricane Maria. The homes, Andujar said, are now required to have 30 days of food on hand, and the department has also requested they have generators and water tanks.

She added that about 315,000 elderly people currently receive benefits as part of a $1.27 billion federal allocation under the Nutritional Assistance Program.

The U.S. Federal Emergency Management Agency (FEMA) remains on the island and said it has given municipalities money to improve community resilience.

Dr. Carmen Sanchez Salgado, Puerto Rico’s ombudsmen for the elderly, said her staff has been educating elderly people about the emergency supplies they need.

Charities and nonprofits have also helped. The nonprofit PRxPR, created in response to Maria, is funding solar panels for elderly people and community centers.

One such center in Naguabo had no power as recently as four weeks ago, said Carmen Baez, the group’s co-founder.

“Our installation was it,” she said.

(Reporting by Nick Brown, Jessica Resnick-Ault and Ricardo Ortiz; Additional reporting by Robin Respaut; Editing by Daniel Bases and Brian Thevenot)

Puerto Rico power grid braces for hurricane season

Jose Alvarez, 60, uses a head lamp while walking in the dark as the island's fragile power system is still reeling from the devastation wrought by Hurricane Maria eight months ago, in Jayuya, Puerto Rico May 10, 2018. REUTERS/Alvin Baez

By Jessica Resnick-Ault and Nick Brown

NEW YORK (Reuters) – The U.S. federal agency tasked with restoring electricity to Puerto Rico, after Hurricane Maria hit the Caribbean last year, is leaving the island though thousands still have no power heading into the next hurricane season starting next month.

Only a last-minute request from the governor of the island, bemoaning the “fragile state” of the power grid, managed to keep most of the generators brought by the Federal Emergency Management Agency (FEMA) on Puerto Rican soil for another six months.

The remaining generators might help keep the lights on for hospitals or police stations if the island gets hit again during the coming hurricane season, which begins June 1.

Contractors of the U.S. Army Corps of Engineers install an electricity pole as the island's fragile power system is still reeling from the devastation wrought by Hurricane Maria eight months ago, in Utuado, Puerto Rico May 17, 2018. REUTERS/Alvin Baez

Contractors of the U.S. Army Corps of Engineers install an electricity pole as the island’s fragile power system is still reeling from the devastation wrought by Hurricane Maria eight months ago, in Utuado, Puerto Rico May 17, 2018. REUTERS/Alvin Baez

Hurricane Maria devastated Puerto Rico last September, leaving 1.5 million homes and businesses in the dark. Both the island’s power utility and the Trump Administration’s Federal Emergency Management Agency were criticized for a slow response.

Most power has been restored by the U.S. Army Corps of Engineers but the electricity grid remains unreliable, and suffered an island-wide blackout last month.

“The whole world is very nervous about hurricane time,” said Rosalina Abreu Gonzalez, who lives near Mariana, on the eastern side of the island, where power has still not been restored. “There is a real concern – the government hasn’t provided an energy system that is more secure.”

The Army Corps, a unit of the U.S. armed forces, has said its task is largely complete now that most people have power. About 22,000 customers are still without electricity, most in remote areas, according to the new head of the island’s power utility, the Puerto Rico Electric Power Authority.

“Our mission wasn’t to build a modern resilient system,” Charles Alexander, Director of Contingency Operations and Homeland Security Headquarters at the Army Corps, said at a Senate hearing last week.

On April 29, Governor Ricardo Rossello asked U.S. officials to leave behind 850 generators at critical facilities, along with three larger generators used to keep the grid stable. FEMA agreed to leave the mega-generators and generators for 700 critical facilities. Mega-generators supply 75 megawatts of power, enough to power 75,000 homes.

New PREPA Chief Executive Walter Higgins, who has only been on the job for two months, said he is focusing on emergency procedures in the event of another disaster in coming months.

He said there is a plan for building a more resilient grid in the future. Higgins took over from Ricardo Ramos, who resigned as CEO in November after coming under fire for signing unvetted, little-known contractors to restore power, rather than immediately ask for assistance from other utilities.

“Unfortunately, pain causes learning, and what we’ve learned is how to get mutual assistance called for and on the island immediately,” Higgins told Reuters.

Residents of La Chorrera neighbourhood carry an electricity pole as the island's fragile power system is still reeling from the devastation wrought by Hurricane Maria eight months ago, in Utuado, Puerto Rico May 11, 2018. REUTERS/Alvin Bae

Residents of La Chorrera neighbourhood carry an electricity pole as the island’s fragile power system is still reeling from the devastation wrought by Hurricane Maria eight months ago, in Utuado, Puerto Rico May 11, 2018. REUTERS/Alvin Baez

Still, PREPA’s grid lacks buried power lines or reinforced poles, common in other hurricane prone areas. The power utility ran up an $8 billion debt over many years, largely due to poor bill collection, causing the system to fall into disrepair.

“It is very hard to see these messages where the government is saying we’re ready for next season. We’re not,” said Sheylda Diaz, a biology professor who lives near Utuado, in the island’s center, where some lines and poles have yet to be fixed.

The Army Corps will not provide further line restoration after Friday, FEMA said.

“People here have no idea that they are leaving,” said Abreu Gonzalez, who runs a center where people without power can go for meals.

Higgins said he sympathizes with those who want the Corps to remain. “I can understand why somebody would want them to stay longer, as long as there’s a single customer out.”

Maria hit shortly after Hurricanes Harvey and Irma slammed the U.S. mainland in 2017, but in both cases, power was largely restored within a week.

“I cannot imagine a scenario where 20,000-plus Texans or 20,000 Floridians were without power and FEMA would make that decision,” said Sen. Martin Heinrich, a Democrat from New Mexico. “I think that’s reprehensible.”

(Reporting By Jessica Resnick-Ault; Editing by Diane Craft)

Colombia evacuates nearly 5,000 people amid fears dam may burst

People rest in tents set up at the municipal coliseum after the Colombian government ordered the evacuation of residents living along the Cauca river, as construction problems at a hydroelectric dam prompted fears of massive flooding, in Valdivia, Colombia May 17, 2018. REUTERS/Fredy Buile

BOGOTA (Reuters) – Colombia has ordered the evacuation of nearly 5,000 people living along the Cauca river in the northern part of the country after construction problems at a hydroelectric dam prompted fears of massive flooding.

Heavy rains have increased water levels in the Cauca, which feeds the Ituango Dam in Antioquia province, the country’s largest-ever hydroelectric project. Problems with filling mechanisms and tunnels at the dam have authorities on high alert.

“We are working jointly with all institutions on the worst-case scenario, which is the breaking of the dam, which would provoke a huge flood in down-river municipalities,” said Jorge Londono, the head of Empresas Publicas de Medellin, the public utility company that owns the dam.

“That’s a catastrophic scenario,” Londono added.

The dam, which has not yet begun power generation, has cost nearly $4 billion to build and is meant to generate 17 percent of Colombia’s electricity needs. A total of 4,985 people from down-river areas were moved to shelters away from the flood zone, the Andean country’s disaster agency said in a statement.

Some 200,000 people live in the 12 towns and populated areas in Antioquia, Bolivar, Cordoba and Sucre provinces that could eventually be affected by possible flooding, authorities said.

(Reporting by Luis Jaime Acosta; Writing by Julia Symmes Cobb; Editing by Will Dunham)

Venezuela begins power rationing as drought causes severe outages

Lisney Albornoz (2nd R) and her family use a candle to illuminate the table while they dine, during a blackout in San Cristobal, Venezuela March 14, 2018. Picture taken March 14, 2018. REUTERS/Carlos Eduardo Ramirez

By Anggy Polanco and Isaac Urrutia

SAN CRISTOBAL, Venezuela (Reuters) – Venezuela imposed electricity rationing this week in six western states, as the crisis-hit country’s creaky power grid suffered from a drought that has reduced water levels in key reservoirs needed to run hydroelectric power generators.

The four-hour formal outages began on Thursday. But many residents scoffed at the announcement, wryly noting that they have been suffering far more extended blackouts during the last week.

“We have spent 14 hours without electricity today. And yesterday electricity came and went: for six hours we had no power,” said Ligthia Marrero, 50, in the western state of San Cristobal, noting that her fridge had been damaged by the frequent interruptions.

Crumbling infrastructure and lack of investments have hit Venezuela’s power supply for years. Now, the situation has been exacerbated by dwindling rains.

In the worst-hit western cities, business has all but ground to a halt at a time when the OPEC nation of 30 million is already suffering hyperinflation and a profound recession. Many Venezuelans are unable to eat properly on salaries of just a couple of dollars per month at the black market rate, sparking malnutrition, emigration and frequent sights of Venezuelans digging through trash or begging in front of supermarkets.

Maybelin Mendoza, a cashier at a bakery in Tachira state, said business has been further hit because points of sale stop working during blackouts – just as Venezuelans are chronically short of cash due to hyperinflation.

In the most dramatic cases, the opposition governor of Tachira state said three people, including a four-month-old, died this week because they failed to receive assistance during a power outage.

“Because of electrical failures, the machines weren’t able to revive the people and they died,” said Laidy Gomez.

Reuters was unable to confirm the report.

Authorities have acknowledged that interruptions will continue for at least two weeks, but they have not said whether they will spread to other states.

A worker tries to start the generator of the Padre Justo hospital during a blackout in Rubio, Venezuela March 14, 2018. Picture taken March 14, 2018. REUTERS/Carlos Eduardo Ramirez

A worker tries to start the generator of the Padre Justo hospital during a blackout in Rubio, Venezuela March 14, 2018. Picture taken March 14, 2018. REUTERS/Carlos Eduardo Ramirez

“Of a possible 1,100 megawatts, we are only generating 150 right now,” Energy Minister Luis Motta told reporters referring to the Fabricio Ojeda dam, in the western Andean state of Merida.

Capital city Caracas and other major cities have not been hit by rationing yet. Two years ago, rationing there lasted five months when a drought hit the Guri dam, the country’s largest hydroelectric dam.

But because of the economic crisis, Venezuela has reduced electricity consumption to about 14,000 megawatts at peak hours, according to engineer and former electricity executive Miguel Lara. Two years ago, state-run Corpoelec put the figure at 16,000 megawatts.

(Writing by Andreina Aponte and Girish Gupta; Editing by Corina Pons, Alexandra Ulmer and David Gregorio)

An economy in ruins leaves Gazans with hard choices

Palestinians stand at their house in the northern Gaza Strip February 12, 2018. REUTERS/Mohammed Salem

By Nidal al-Mughrabi

GAZA (Reuters) – The man who makes crisps, chocolate and vanilla snacks for Gaza had just finished explaining how his business was going through the worst economic crisis of his life when the lights went out, shutting down his factory. Again.

Wael Al-Wadiya has been running his food manufacturing business since 1985 – in a Gaza Strip that was very different from the one in which he and two million other Palestinians now live.

Back then Israeli settlers were still in Gaza, the Islamist militant group Hamas did not yet exist, and Palestinians were still two years away from the first of the uprisings against Israeli military occupation that introduced the word ‘Intifada’ to the world.

Sitting in a slowly declining industrial estate near the fortified border with Israel, the 51-year-old confectioner says that Gaza has been brought to a near-standstill by a decade of Israeli-led blockades, and internal Palestinian divisions.

“The situation is very miserable. People’s ability to buy has fallen to a minimum, therefore our businesses and businesses in Gaza are suffering as never before,” said Wadiya.

Palestinians work at Wael Al-Wadiya's snacks and chips factory, east of Gaza City February 19, 2018. REUTERS/Mohammed Salem

Palestinians work at Wael Al-Wadiya’s snacks and chips factory, east of Gaza City February 19, 2018. REUTERS/Mohammed Salem

He has cut production by 70 percent and wages by 30 percent. Employees who used to work each day now may work one day in three. “Unless a miracle happens, factories and companies will close down and it will be the real death of the economy,” he said.

There has long been poverty in Gaza, but with unemployment now at 43.6 percent, according to the Palestinian Bureau of Statistics, even once-wealthy merchants are defaulting on debts, causing other businesses to collapse, like dominoes.

Many in Gaza blame Israel for the hardships, accusing it of placing an economic blockade on the enclave that has drastically reduced the movement of people and goods.

But Gazans also fault their own leaders, complaining of a power struggle between Hamas, the armed group that seized military power in Gaza in 2007, and Fatah, the secular party of Western-backed Palestinian President Mahmoud Abbas.

Both Hamas and Fatah levy taxes. Both run competing bureaucracies. And even electricity has become a tool of political power – until recently the blackouts that plagued Wadiya’s factory were exacerbated by Abbas cutting money for Israeli current for Gaza.

Fatah says Hamas exploits money it collects from electricity consumers for its own purposes.

Israel, which pulled its settlers and soldiers out of Gaza in 2005, says it has been forced to control access to and from the territory to stop Hamas sending out gunmen and bombers, and from smuggling in weapons or material to make them.

The Israeli military says that it carries out “constant calculated risk management” between allowing humanitarian aid through to Gazans, while contending with Hamas, which “attempts to exploit the aid intended for Gaza’s civilian residents”.

 

POVERTY AND SECURITY

A combination of war, isolation, and internal rivalries has left Gaza in its current state.

Last year Abbas cut the salaries of 60,000 government employees in Gaza by 30 per cent, leaving them with little to spend in shops and markets after paying off bank loans. The sums of bounced checks in Gaza nearly doubled from $37 million to $62 million between 2015 and 2016, and then again to $112 million in 2017, according to the Palestinian Monetary Authority.

This lack of buying power contributed to a drop in imports through the one remaining commercial crossing with Israel, with just 350 truckloads per day compared with 800 in the last quarter of 2017.

Palestinian children play as a girl held by her mother looks out of the window of house in the northern Gaza Strip February 12, 2018. REUTERS/Mohammed Salem

Palestinian children play as a girl held by her mother looks out of the window of house in the northern Gaza Strip February 12, 2018. REUTERS/Mohammed Salem

Some merchants took a religious initiative in December in which they offered to write off customers’ debts using the hashtag ‘Sameh Toajar’ – ‘Forgive, and Be rewarded (by God).’

It was supported by Hamas and other factions, but the scale of the debts was too great for such a small-scale remedy.

“Gaza has gone into clinical death and is in need of root solutions, real and sustainable, and not temporary or short-lived solutions,” said Maher al-Tabba, a Gaza economist.

At the other end of the economic scale from the merchants are Suhaib, Shadi and Ahmed al-Waloud, who scavenge through garbage near their home in northern Gaza searching for plastic to sell to recycling plants.

Their father was one of the Gazans who lost their jobs in Israel more than a decade ago when Israel closed the door to thousands of Palestinian workers following Hamas’s seizure of control.

“I have been used to doing this job since I was a child,” said Suhaib, 19, from Beit Lahiya. But they now earn just enough to “stay alive,” he said, because the price paid for second-hand plastic has fallen by 80 per cent. “Nowadays there is not much work. People are not throwing away a lot of plastic.”

The question that dominates Gaza is whether hard times will make Palestinians more inclined to support attacks on Israel, or less so, because they fear reprisals.

 

Ali al-Hayek, the chairman of the Palestinian Businessmen Association in Gaza, said that total collapse of the economy would lead to instability that would be in nobody’s interests.

“Gaza is living through a real humanitarian crisis,” he said. “An economic collapse will lead to a security collapse that will cause trouble for the international community and for Israel.”

(Reporting by Nidal al-Mughrabi Writing by Stephen Farrell, Editing by William Maclean)

Hundreds leave homes near dangerously crumbling Puerto Rico dam

Local residents look at the flooded houses close to the dam of the Guajataca lake. REUTERS/Carlos Garcia Rawlins

By Dave Graham and Robin Respaut

SAN JUAN (Reuters) – Most people living near a crumbling dam in storm-battered Puerto Rico have been moved to safety, Governor Ricardo Rossello said on Monday, as he urged the U.S. Congress to fund an aid package to avert a humanitarian crisis after Hurricane Maria.

Most of the Caribbean island, a U.S. territory with a population of 3.4 million, is still without electricity five days after Maria swept ashore with ferocious winds and torrential rains, the most powerful hurricane to hit Puerto Rico for nearly a century.

There have been growing concerns for some 70,000 people who live in the river valley below the Guajataca Dam in the island’s northwest, where cracks were seen appearing on Friday in the 88-year-old earthen structure.

An aerial view shows the damage to the Guajataca dam. REUTERS/Alvin Baez

An aerial view shows the damage to the Guajataca dam. REUTERS/Alvin Baez

Rossello said he was working on the assumption that the dam would collapse. “I’d rather be wrong on that front than doing nothing and having that fail and costing people lives,” he said in an interview with CNN.

“Some of the dam has fallen apart and now we’re making sure that we can assess if the other part is going to fall down as well. … Most of the people in the near vicinity have evacuated.”

It was unclear if the governor was saying that most of the 70,000 valley inhabitants had left the area, or only the several hundred people living in the small towns closest to the dam. About 320 people from those towns have moved to safety, according to local media.

The fear of a potentially catastrophic dam break added to the difficulties facing disaster relief authorities after Maria, which was the second major hurricane to strike Caribbean this month and which killed at least 29 people in the region.

At least 10 of those who died were in Puerto Rico, including several people who drowned or were hit by flying debris, and three elderly sisters who died in a mudslide.

Many structures on the island, including hospitals, remain badly damaged and flooded. Clean drinking water is hard to find in some areas. Very few planes have been able to land or take off from damaged airports.

After Maria caused widespread flooding, the National Weather Service warned of further flash floods in some western parts of the island on Monday as thunderstorms moved in.

The hurricane hit at a time when Puerto Rico was already battling economic crisis. [nL2N1M31LR]

Rossello said on Monday that before the storms struck he had been embarking on an aggressive fiscal agenda that included more than $1.5 billion in cuts.

“This is a game changer,” the governor told CNN. “This is a completely different set of circumstances. This needs to be taken into consideration otherwise there will be a humanitarian crisis.”

In Washington, U.S. House of Representatives Speaker Paul Ryan said Congress was working with President Donald Trump’s administration to make sure the necessary assistance reaches Puerto Rico.

“Our fellow citizens in Puerto Rico remain in our prayers as we make sure they have what they need,” Ryan said in a statement.

Local residents react while they look at the water flowing over the road at the dam of the Guajataca lake.

Local residents react while they look at the water flowing over the road at the dam of the Guajataca lake.
REUTERS/Carlos Garcia Rawlins

Maria continued to weaken and would likely be downgraded from a hurricane to a tropical storm by Tuesday night, the National Hurricane Center said. As of 11 a.m. ET (1500 GMT) on Monday, it was about 315 miles (505 km) south-southeast of Cape Hatteras, North Carolina, heading slowly north, the center said.

The storm was unlikely to hit the continental United States directly, but a tropical storm warning was in effect for much of the North Carolina coast. Officials issued a mandatory evacuation order for visitors to Ocracoke Island in the Outer Banks, beginning at 5 a.m. ET (0900 GMT) on Monday.

 

(Reporting by Dave Graham and Robin Respaut; Additional reporting by Jonathan Allen and Peter Szekely in New York and Doina Chiacu in Washington; Editing by Daniel Wallis and Frances Kerry)

 

Palestinian Authority halts payments for Israeli electricity to Gaza: Israel

Palestinians walk on a road during a power cut in Beit Lahiya in the northern Gaza Strip January 11, 2017. Picture taken January 11, 2017. REUTERS/Mohammed Salem

By Jeffrey Heller

JERUSALEM (Reuters) – The Palestinian Authority will no longer pay for the electricity Israel supplies to Gaza, Israeli officials said, a move that could lead to a complete power shutdown in the territory whose two million people already endure blackouts for much of the day.

Thursday’s decision was another sign of a hardening of Palestinian Authority policy towards its Hamas rivals, who control the enclave.

A senior U.N. official expressed concern about the deteriorating energy situation in Gaza and called for swift action by Israeli and Palestinian Authorities and the international community to ensure basic services keep running.

The Western-backed Authority and Hamas are in deadlock in a struggle over a unity deal that could loosen the Islamist group’s hold on the Gaza Strip, territory it won control of from forces loyal to Palestinian President Mahmoud Abbas in 2007.

A Hamas spokesman, Sami Abu Zuhri, called the decision to halt the payments “a grave escalation and an act of madness”.

Israeli authorities deal with the PA on electrical and fuel supplies for Gaza because Israel does not engage with Hamas, which it regards as a terrorist organisation.

The PA has already taken several steps, such as taxing Israeli fuel it purchases for Gaza’s sole power plant — which has been unable to come up with the funds and stopped operating two weeks ago — to pressure Hamas into new Palestinian elections.

Regaining a measure of control over Gaza could empower Abbas politically as Israel and the Palestinians await a widely expected push by U.S. President Donald Trump for a revival of peace efforts that stalled in 2014.

“The Palestinian Authority has informed (us) it will immediately stop paying for the electricity that Israel supplies to Gaza through 10 power lines that carry 125 megawatts, or some 30 percent of Gaza’s electrical needs,” said a statement from COGAT, Israel’s military liaison agency with the PA.

With the generating plant off-line and Egyptian supplies via power lines notoriously spotty, Israeli electricity has been vital, keeping power on for Gazans, although for only four to six hours a day. Hospitals, ministries and many wealthier apartment blocks have generators but fuel is costly.

“With power outages at 20 hours a day and emergency fuel supplies running out, basic services are grinding to a halt,” Robert Piper, the U.N. coordinator for humanitarian aide and development activities, said in a statement.

Spokesmen for the Palestinian Authority and the Palestinian Energy Authority declined comment.

Israel charges the PA 40 million shekels ($11 million) a month for the electricity, deducting the sum from the transfers of Palestinian tax revenues that Israel collects on behalf of the Authority.

Israeli sources said Gaza needs 400 megawatts of power to ensure full 24-hour supply to its residents.

That goal is not being met even when the power plant is operational. It usually produces 60 megawatts, added to the 125 megawatts supplied by Israel and 25 megawatts that come across power lines from Egypt.

(Additional reporting by Ali Sawafta in Ramallah and Nidal al-Mughrabi in Gaza; Editing by Angus MacSwan and Pritha Sarkar)

Heat wave tests Southern California’s power grid amid gas shortage

Thermometer sign reads 118 degrees, heat

By Steve Gorman and Nichola Groom

LOS ANGELES (Reuters) – California’s power grid operators warned homes and businesses on Monday to conserve electricity as rising demand for air conditioning stoked by a record-setting heat wave across the U.S. Southwest tested the region’s generating capacity.

The so-called Flex Alert was posted until 9 p.m. Pacific time during a second day of triple-digit temperatures that strained Southern California’s energy production, creating a potential for rolling blackouts on the first official day of summer.

But the peak hour for energy demand came and went Monday evening without disruption of the region’s power delivery network, the California Independent System Operator (ISO) reported.

“Since we’re past that and have not experienced any trouble, I think we’re headed into the safe zone,” agency spokeswoman Anne Gonzales told Reuters.

Temperatures were expected to begin abating on Tuesday, according to weather forecasts. As of Monday night, there were no plans to extend the Flex Alert, ISO officials said.

Monday’s alert was the first big test of power generators’ ability to meet heightened energy demands in the greater Los Angeles area without natural gas supplies normally furnished by the now-crippled Aliso Canyon gas storage field, effectively idled since a major well rupture there last fall.

The oven-like heat prompted the city of Los Angeles to keep its network of public “cooling centers” – libraries, recreation centers and senior centers – open for extended hours as a haven for people whose homes lack air conditioning.

Area home improvement and hardware merchants were doing a brisk business in fans and AC window units.

Brett Lopes, 31, a freelance lighting technician, stopped in a Home Depot outlet near downtown to buy supplies for a homemade air conditioner he called a “swamp cooler” to use while he waited for his landlord to repair his broken AC unit.

“It’s brutal,” he said of the heat, explaining that he looked up directions on YouTube for assembling the makeshift cooling device. “It doesn’t work as well as AC, but it’s better than sitting in 100 degrees.”

Others flocked to public swimming pools.

“It was really refreshing today, but more crowded than usual,” said Paul Stephens, 31, a pastor who was swimming laps at the Rose Bowl Aquatic Center in Pasadena, where the mercury climbed to 108 Fahrenheit (42 Celsius) .

BALANCING THE GRID

The ISO, which runs the state’s power grid, urged consumers on Monday to cut back on electricity usage, especially during late-afternoon hours.

Utility customers were advised to turn off unnecessary lights, set air conditioners to 78 degrees Fahrenheit or higher, and wait until after 9 p.m. to run major appliances, such as clothes washers and dryers.

Gonzales credited public cooperation with the flex alert for likely helping avert widespread outages on Monday.

Large stretches of three states sweltered in a second straight day of record, triple-digit temperatures, as the National Weather Service posted excessive-heat warnings through Wednesday for southern portions of California, Arizona and Nevada, though the hot spell appeared to have peaked on Monday.

Power customers ranging from homes and hospitals to oil refineries and airports are at risk of losing energy at some point this summer because a majority of electric-generating stations in California use gas as their primary fuel.

Since the energy crisis of 2000-2001, the ISO has imposed brief, rotating outages in 2004, 2005, 2010 and 2015, mostly related to unexpected transmission line or power plant failures during periods of unusually high demand.

With California’s largest natural gas storage field shut down indefinitely at Aliso Canyon, state regulators have warned that Los Angeles faces up to 14 days of gas shortages severe enough to trigger blackouts this summer.

Aliso Canyon, owned by Southern California Gas Co, a division of San Diego-based utility giant Sempra Energy, normally supplies the region’s 17 gas-fired power plants, hospitals, refineries and other key parts of California’s economy, including 21 million residents.

The gas leak there, ranking as the worst-ever accidental methane release in the United States, forced thousands of nearby residents from their homes for several months after it was detected last October. The leak was finally plugged in February.

(Reporting by Scott DiSavino in New York; Writing and additional reporting by Steve Gorman in Los Angeles; Editing by Leslie Adler and Andrew Hay)