Venezuelan businesses seek credit and tax breaks for power generators amid outages

The Association of Merchants and Industrialists of Valera (Acoinva) in Venezuela's Trujillo state has formally requested government support, including tax exemptions and access to credit lines. These measures are intended to help local businesses invest in independent electricity generation systems amidst severe and prolonged power outages.

According to private sector assessments, the constant failures in the electrical grid have drastically cut operational capacity and transaction volumes in the Trujillo region by 20% to nearly 30%. This economic contraction makes it increasingly difficult for businesses to pay taxes and provide bonuses to their employees.

Ana María Faccín, a spokesperson for Acoinva, highlighted the operational challenges. She noted that battery converters and generators are proving insufficient against the extended duration of the blackouts. Currently, over 30% of businesses in the region are already utilizing alternative energy sources. However, the use of motor-powered generators is heavily dependent on a consistent supply of diesel fuel, which is often scarce at service stations.

In response to the crisis, Acoinva's board of directors has submitted a formal list of demands to local and national authorities. The business group is also advocating for the creation of a unified virtual service portal. This digital system aims to streamline administrative processes, reduce operational costs for companies, and expedite the registration procedures necessary for commercial operations.

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The autonomy of battery converters and generators proves insufficient given the prolonged duration of the blackouts. More than 30% of businesses already resort to alternative energy sources. The use of motor plants depends directly on a regular supply of diesel at service stations.