Cuba Gob. Hikes Electricity Rates
HAVANA TIMES, Oct. 29 — Cuba’s state run Union Electrica power company announced a rate hike on Friday for consumers of more than 300 kilowatts per month. The firm said the increase was needed because of higher oil prices on the international market.
Cuba receives its oil from Venezuela, its top political and commercial ally.
The rate hike “will affect 5.6 percent of the population, which today accounts for 14.4 percent of the electricity consumed in Cuban homes,” reported IPS.
Increased production costs are like taxes on business. They must be passed down the line to the ultimate consumer. If they are not, production is hindered or brought to a halt.