Venezuela’s economy could soon be choked even harder.
Companies are struggling to keep operating under power consumption restrictions due to severe power shortages in the nation.
Those unable to cope could now be shut down, which seems like a pretty bad way for the nation to increase economic activity and come out of recession.
Restaurants, liquor stores, hotels, gyms, car dealerships and a yacht club were on the list of 80 firms in the capital Caracas due to have their power cut on Monday for failing to bring consumption down 20 per cent, the state utility said.
The local unit of Japanese firm Sony Corp (6758.T) will also be among those sanctioned.
President Hugo Chavez’s government has introduced rationing, and demanded power cuts across the South American OPEC member, to cope with an electricity shortage that is jeopardizing Venezuela’s ability to pull out of a recession.