Ecuador Revises Power Disconnection Order for Businesses Amid Energy Concerns

Ecuador's Secretary of Public Administration, José Julio Neira, announced on October 14 a revision to a mandatory power disconnection order for medium and high-consumption companies. The initial directive, issued by the Undersecretariat of Distribution of the Ministry of Environment and Energy, had notified companies to disconnect from the National Interconnected System for seven consecutive days, from October 14 to October 20, 2026. Neira confirmed the letter's issuance but stated that the terms were erroneous and the seven-day measure would not be maintained.

High-voltage clients (AV1) are authorized to resume their usual electricity consumption from the public grid starting October 15, 2026, at 00:00. Medium-voltage companies, however, are required to maintain a planned disconnection from October 14 until October 16, 2026, at 24:00, a duration of three days. The official responsible for issuing the initial, erroneous letter has been immediately dismissed.

This clarification followed reports from electricity distribution companies, such as Centrosur, confirming the original seven-day disconnection order to high and medium voltage companies in their service areas. The measure was attributed by CNEL to unfavorable hydrological conditions affecting the country's main hydroelectric plants and temporary fuel restrictions for certain thermal generation units. Citizen reports of temporary power outages occurred in cities including Quito, Guayaquil, and Ambato from the night of October 13 and morning of October 14.

Industry associations expressed concern over the initial disconnections. The National Association of Food and Beverage Manufacturers (ANFAB) highlighted potential impacts on production, food safety, and national supply. The National Chamber of Aquaculture (CNA) warned that extended power cuts threaten shrimp production, increase operational costs, and jeopardize exports. The Mazar reservoir, critical for the Paute Hydroelectric Complex, registered a level of 2,125.09 meters above sea level on October 14, only 10.09 meters above its critical limit of 2,115 meters.

What to watch

The revised disconnection schedule for medium-voltage companies concludes on October 16. Monitoring the stability of the National Interconnected System and any further government communications regarding energy supply will be crucial. The impact of the three-day disconnection on medium-voltage businesses, particularly those in the food and aquaculture sectors, will be a key indicator of the measure's economic effects.

Sources: primicias.ec; primicias.ec; vistazo.com.