CARACAS - Struggling with a drought that threatens water and power supplies in an election year, Venezuela has ordered state-run water utilities to charge large penalties if consumers exceed normal usage levels.
Environment Minister Alejandro Hitcher said in an interview published by newspaper Ultimas Noticias on Wednesday that heavy water users will be charged a premium several times the basic cost of water from March 1.
Venezuelan President Hugo Chavez this month declared a state of emergency in the electric sector, after the drought reduced reservoirs serving the country's Guri hydroelectric dam to dangerously low levels.
Guri typically supplies more than half of the OPEC member nation's power. Water rationing is already in place 48 hours a week in the capital Caracas.
Consumers risk cuts in their water supply if they fail to pay penalties promptly, Hitcher said.
The Chavez administration has taken several measures to curb the country's electricity usage, including rolling blackouts and rationing in some regions.
Last year, Chavez called on Venezuelans to limit themselves to three-minute showers to save water.
Major Venezuelan legislative elections are scheduled for September, when Chavez-backed candidates could face a mounting challenge from opposition parties.
A recent poll showed many blame the government for current utilities problems, and doubt its ability to resolve the crisis.
According to a decree in the Official Gazette dated Jan. 25, households in Caracas will pay a regular rate of up to 1 Bolivar (38 cents) per cubic meter for the first 40 cubic meters (10,568 fluid gallons).
If they consume between 40 and 100 cubic meters, the fees would rise to 3.5 bolivars ($1.35) per cubic meter, and top out at 5 bolivars ($1.92) when water use exceeds 100 cubic meters.
For industrial water users, the rate could reach up to 7 bolivars ($2.69) per cubic meter when they exceed 150 percent of preset usage levels.
In January, Venezuela created a multitiered currency regime, devaluing the bolivar's official rate to 4.3 per dollar for most goods, but allowing some priority items to be be bought at 2.6 bolivars per dollar.
Industries would be charged up to four times the normal rate if they use between 100 and 150 percent of their regular allowances, the Gazette said.
It was not immediately clear from the Ultimas Noticias report how the preset allowances would be assigned. Hidroven officials earlier declined Reuters' request for an interview and weren't available for comment.
The Gazette said the fees would vary by region and be applied by local units of Hidroven.
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