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Significance

Ecuador's power supplies have been under severe strain for months, with a prolonged dry period having hit hydroelectric generation. The government has implemented measures to alleviate the crisis, contracting fossil-fuel generators for example. A combination of these and increased rainfall has improved matters, but Noboa has been criticised for not acting more decisively, and the crisis has crippled the economy, which will probably contract in 2024.

Impacts

Noboa’s strategy of blaming previous governments for the electricity crisis will become less effective the longer problems endure.

The crisis will have a significant fiscal impact and increase borrowing requirements for future governments.

Any reimplementation of electricity rationing before February’s elections would risk weakening Noboa’s support considerably.

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