In the dark

Quito, Ecuador – With darkness descending on the Ecuadorian capital of Quito, 26-year-old Brandon Samueza races to send out job applications before 8pm, when the power — and his internet — go out.

Since September 23, government-controlled blackouts have plunged the South American country of 18 million into darkness almost daily. Some outages can last up to 14 hours per day.

The cuts aim to prevent the collapse of the electrical grid, as a months-long drought dries up the rivers that power hydroelectric dams, Ecuador’s primary source of electricity.

Initially introduced as a stopgap measure, the power cuts had been extended into a third consecutive month, throwing the lives of many Ecuadorians into disarray.

But in the face of public outcry and protests in the street, President Daniel Noboa has announced that the blackouts for most Ecuadorians would end, starting on Friday.

Power cuts for industry, however, will continue until the end of the year.

Without power, families have had to dine under the white glow of flashlights. Students struggled to attend online classes, and some chronic-need patients had to go without treatment. Workers like Samueza have even lost their jobs as the outages devastated factories and small businesses.

“I’ve been applying for jobs for the past two months and haven’t even received a call for an interview,” said Samueza. “It’s complicated right now to find work.”

The power cuts are an additional pressure during an already tumultuous time in Ecuador.

In recent years, violent crime rates have ticked up amid a rise in cocaine trafficking. And in 2023, the country weathered political upheaval, as embattled former President Guillermo Lasso dissolved the National Assembly and ended his own term early.

Now, Ecuador’s prolonged drought — its worst in nearly 60 years — and the resulting energy shortages are leaving locals exasperated.

“We were already impacted prior to the blackouts, but what the blackouts did was deteriorate our living conditions even more,” said Marcela Arellano, president of the Ecuadorian Confederation of Free Trade Union Organizations (CEOSL).

The manufacturing industry and small businesses are the sectors worst hit by the outages, according to Arellano.

She explained that many small businesses and factories are unable to afford generators, which are increasingly popular among larger companies as well as some restaurants and cafes.

But without power, businesses are forced to shutter early, and factories have decreased production.

In November, Quito’s Chamber of Commerce estimated that the manufacturing industry lost $4bn and the commerce sector $3.5bn during the first two months of power cuts.

Ordinary Ecuadorians, like Samueza, have borne much of the cost.

With water levels dropping, Ecuador began a period of electricity rationing in April. But the situation got worse in September.

When the power cuts of up to 14 hours started, production slowed to a trickle at Warenhaus, the factory where Samueza had packaged cookware for the past two years. By October, Samueza said that Warenhaus was generating only $60,000 a month in products — well short of its goal of $130,000.

Later that month, Samueza was fired. Twelve out of the factory’s 20 workers were laid off, Samueza said.

With a four-year-old at home, Samueza wasted no time in sending resumes to prospective employers. But with Ecuador’s economy in turmoil, Samueza has lost hope of finding work soon.

“I keep thinking, ‘When will I have a job again?’” he said.

Federal unemployment figures from October and November have yet to be released, but Arellano said that a government-operated online job platform shows that about 24,000 job contracts were eliminated since the power outages started.

Most job losses were in the manufacturing industry and commercial sector, she added.

“We don’t see a path for recovery,” said Arellano. “First, there is no certainty that the outages will cease, and second, there are no guarantees that there will be economic relief for the small and medium-sized businesses.”

She pointed out that those smaller companies are a key pillar in Ecuador’s economy: Government figures say they represent between 90 and 95 percent of the business sector.

Efrain Nunez, a 38-year-old cook at Chan Chan, a Latin American fusion restaurant in Quito’s historic centre, said that they have seen losses of nearly $100 a day due to the cuts.

He explained that the owners of Chan Chan, a small business, are unable to afford a generator, which would cost between $700 and $1,000.

But without power, the restaurant has no refrigeration. And without refrigeration, its meat supply has gone bad. During outages of eight hours or more, the restaurant is even forced to shut down before its regular closing hours.

“Without electricity at night, our street is left completely dark. You literally can’t see anything. So out of concern for our security and the business’s security, we would close at 6pm,” said Nunez.

As a result, the restaurant owners have considered permanently closing to prevent more financial losses.

“The businesses that are able to weather the crisis are large ones, but small businesses like ours or the ice cream shop or the butcher’s shop are having to jump ship,” said Nunez.

As Ecuador’s historic drought continues, power cuts may persist until April, said Jorge Luis Hidalgo, an energy consultant.

For decades, experts have urged authorities to increase Ecuador’s energy supply by expanding its solar and wind energy capacities and bolstering its thermoelectric plants.

But Hidalgo said that electricity and fossil fuel subsidies have kept Ecuador’s energy prices among the lowest in the region: Residents and businesses pay only around $0.10 per kilowatt hour, according to government estimates.

That lack of income has, in turn, disincentivised the private sector from investing in alternative energy, according to Hidalgo.

“While Ecuador continues to give energy away, this situation will continue,” he said.

Over the years, as the population grows, the demand for energy has exceeded supply, Hidalgo added. It is a problem President Noboa himself has acknowledged.

In October, he posted a video on social media where he explained that Ecuador currently has an energy deficit that fluctuates between 1,000 to 1,400 megawatts.

That means that Ecuador’s need for electricity exceeded its capacity for production by more than one-tenth. As of 2022, the country was only capable of producing around 8,864 megawatts in total.

The shortage has spurred a political crisis for Noboa, who faced protests in the streets as a result of the government-imposed power cuts.

Those demonstrations come at a delicate time for Noboa. He faces re-election in 2025, as his current mandate is to complete the remainder of his predecessor’s term.

Protesters in November even marched on the presidential palace in Quito, chanting, “There’s no light. There’s no education. And you have the nerve to ask for re-election?”

By December, Noboa promised to end the government blackouts. “We will go back to having normal lives,” he pledged.

Already, in November, Noboa announced that his administration had spent $700m on maintenance of Ecuador’s outdated thermoelectric plants, designed to support Ecuador’s hydroelectric power system during dry periods.

Currently, hydroelectric dams are responsible for generating about 70 percent of Ecuador’s energy.

Noboa also reached an agreement with Colombia to continue buying energy from the neighbouring country. Earlier this year, Colombia had cut electricity exports to Ecuador due to its own problems with drought.

The Ecuadorian government has also brought in a floating thermoelectric plant from Turkiye that produces 100 megawatts and 23 power generators that produce 80 megawatts in total.

In addition, Noboa has axed an energy subsidy for mining companies.

“The mining companies in Ecuador consume more energy than a hospital needs to operate. And yet, their energy rate has been subsidised by the state,” Noboa wrote on social media in October. “The subsidies must go to those who need them most.”

But the changes may come too late for the families hardest hit by the blackouts, like Samueza’s.

Since he was laid off, his wife has stepped up as the family breadwinner, working as a treasurer at a logistics company. Samueza, meanwhile, is trying out driving for a ride-hailing app, which has so far earned him less than a minimum wage.

With a tighter household budget, Samueza said the holiday season is likely to come and go without much fanfare.

But he is optimistic that, come the new year, the power cuts will have ceased and the economy will have recovered enough that he might find a job.

Still, he feels frustrated with the government for his present predicament.

“There shouldn’t be power cuts,” said Samueza. “A government should be prepared for these types of cases, especially since we already went through the same thing in April and May. The fact that they have not done anything to adjust speaks badly of the government.”