Hoy newspaper has taken on the cause of individuals that live in barrios where most of the residents do not pay for the service. The newspaper is championing the cause of individuals who pay for the service but have the misfortune to live in barrios where payment delinquency is widespread.
The Superintendence of Power recently announced it would cut service to these barrios, supplying only 10 hours a day. Hoy newspaper has written two editorials complaining that the government is violating the law when it allows the power distributors to supply less power to areas where collections for the service is low. The newspaper editorialist says that government endorsement of longer blackouts is a kick in the sack to the law itself. The newspaper highlights that it is a way of awarding power distribution companies for their inefficiency in increasing collections.
The newspaper is also critical that the distribution companies are charging based on consumption patterns and not actual consumption.
The editorial highlights that the government cannot play the double role of setting guidelines for the collective good and then authorizing and protecting those who violate indirights of individuals, as is happening now with the distributors.
Concludes that the state has to get acostumbed to the idea tha the solution to the deficiencies in the power market cannot be based on affecting consumers nor kicking around the law.
Finance Minister Vicente Bengoa says that the subsidy to the poor barrios is unsustainable, as it costs the government US$30 million a month. He said that is the reason why the service needs to be rationed in the barrios where few pay for the service. He said that if full service is provided, the subsidy would then cost the government US$50-US$60 million a month in payments due to power generators. He said that the circuits where people pay for the service the investment is recovered.