One of the last places you might think of when someone says “energy crisis” is Venezuela. But we’re not talking about gas or oil but electricity. Business Week reports on a trend in the South American country that’s hindering business and causing a lot of headaches.

Angela Marquez should be pleased, considering the long line of customers at her paint store in the central Venezuelan city of La Victoria, an hour west of the capital of Caracas. There is only one problem: She can’t ring up any purchases because the city is having another one of its frequent power blackouts. “This is completely ridiculous,” Marquez fumes, as customers weigh whether to wait for the power to return. “It’s impossible to run a business in conditions like this. And it’s only getting worse.”

Although Venezuela has the region’s largest oil and natural gas reserves, its electrical system has been neglected for years by successive governments. In April, large parts of the country, including the capital of Caracas, were without power for hours, resulting in chaos. Huge traffic jams clogged the city, subways did not operate, and many people were trapped in elevators. “We are on the edge of a grave crisis,” says Andres Matas, a Caracas electricity analyst. “We are on the edge of nationwide power rationing. Some parts of the country already have partial rationing, like in the east.”

The problem is apparently related to Venezuela’s extreme reliance on hydroelectric power. Experts say that up until now, the country has been lucky because of heavy rains, which have allowed for more power production.

Via / Business Week