Aragua's commercial sector warns of "collapse" due to prolonged power cuts

Businesses in Venezuela's Aragua state are warning of an impending "collapse" as constant, lengthy power outages cripple economic activity. The commercial sector reports a severe contraction, with sales plummeting to critical levels, exacerbated by a combination of persistent blackouts, diminished purchasing power, and heavy fiscal pressure.

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The sector is on the verge of a "collapse" due to constant and prolonged power outages affecting the entity.

Héctor Gómez Camperos, president of Fedecámaras Aragua, told El Siglo newspaper that daily electricity interruptions lasting five to six hours, coupled with the population's declining purchasing power and ongoing tax burdens, have "pulverized" any possibility of financial planning for businesses. This precarious situation has led to a domino effect in the labor market, forcing many establishments to shorten operating hours, lay off staff, or cease operations entirely to avoid further losses.

Even attempts to maintain operations are proving unsustainable, with many businesses functioning under dire conditions and facing slim prospects for long-term survival. The use of private generators has also proven insufficient due to high maintenance costs and constant fuel procurement challenges.

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The combination of blackouts, low demand, and fiscal pressure has led to a severe contraction of economic activity, with sales at critical levels.

In response to this crisis, the business sector has formally requested authorities implement a compensatory fiscal relief plan across Aragua's 18 municipalities. Gómez Camperos stated the proposal aims to "cushion the impact of the blackouts, keep businesses open, and preserve jobs" during what he described as one of the most critical junctures for the regional economy.

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These conditions have pulverized any possibility of financial planning in the sector.