Theft, vandalism cost power sector US$1.2bn/year

Power tapping and vandalism are costing Venezuela's power sector US$1.2bn a year, the president of the country's electric power chamber Caveinel, Gustavo Gonzalez Urdaneta, said in a statement. Power thefts have risen by an average 6.6% over the last 12 years, outstripping the 3.2% average sales growth over the same period, Gonzalez said. The losses account for 28% of all power generated in the country, with the level coming close to 50% in some regions, Gonzalez said, adding that losses totalled 25,181GW in 2002, representing 53 million barrels of oil equivalent, which at an average price of US$22.5 a barrel adds up to US$1.17bn. "If we don't deal with this problem soon, electric companies will be unable to meet clients' needs," he warned. The government is currently preparing a bill to be presented to congress this year making damage, fraud and vandalism crimes to be punished with fines and/or jail, deputy energy minister Nervis Villalobos said, local press reported.