Noboa blames blackout reversal on the weatherman, says 15% VAT will remain in place for now

President Daniel Noboa said Sunday night he was forced to abandon his plan to reduce blackouts to four hours a day because of an incorrect weather forecast. “They predicted high amounts of rain and this did not occur,” he said in an interview on TC Television. “A dry wind and low humidity that was not forecast came in from the east, keeping rainfall amounts low.”

President Daniel Noboa

Two weeks ago, Noboa announced in a social media video that blackouts would be reduced to four hours a day over a three-week period. The plan was abandoned Thursday night, when Energy Minister Inés Manzano announced the current 14-hour a day power suspensions.

“My objective was to give people some relief and certainty for planning purposes but this, unfortunately, was not possible,” Noboa said. He added that technicians at the national electric service recommended even longer blackouts that he rejected.

Although he expects the power crisis to end by December with the addition of new generation capacity, he refused to make promises. “The crisis should not go beyond December as a result of actions we have taken but this also depends on the weather,” he said. “The drought has created extreme conditions at the Mazar and Coca Coda Sinclair generation plants.”

In addition to bringing four out-of-service thermal plants back online, Noboa said he is exploring a number of renewable energy projects as well as nuclear energy. In total, more than 1,500 megawatts will be added to the power grid by May 2025, he claims.

He conceded that the power crisis has taken a toll on his popularity but said he is “working hard to give people a reason to trust the government again.” When asked by interviewer Rafael Cuesta how will accomplish this, Noboa said he will remind citizens not only of his plans to end the power crisis but of the fact that the country’s debt has been reduced, progress has been made in the fight against organized crime and the balance of trade has improved.

In other comments, Noboa said the 15% VAT will remain in place for the foreseeable future. “We need the income to revive the economy,” he said. “Who will finance this effort if we do not have the capacity to repay our debts? How can we access more credit if we can’t finance our basic needs?”

In March, the National Assembly raised the VAT to 13% permanently but allowed the president the discretion to add an additional 2%.