Government relocates CELEC headquarters to Quito, sparking backlash from Cuenca officials over centralization concerns.
In a move that has stirred significant controversy, President Daniel Noboa has ordered the relocation of the Ecuadorian Electric Corporation (CELEC) headquarters from Cuenca to Quito. The directive, formalized through Executive Decree 407 on September 27, 2024, comes amid an energy crisis that has plagued the country, resulting in widespread power outages.
The government’s rationale for the relocation was presented by the Minister of Energy and Mines, Antonio Gonçalves, who asserted that the move is necessary for “optimizing administrative management.”
The relocation is intended to ensure more efficient use of public resources and to decentralize the corporation’s operations, particularly in the southern regions of the country, where CELEC will continue to manage business units. Gonçalves emphasized the need for CELEC’s headquarters to return to Quito, having originally been based there before relocating to Cuenca in 2011.
Public Outcry and Political Reactions
The announcement has ignited strong opposition, particularly from political figures and local authorities in Cuenca, who view the decision as an act of centralism. Leonardo Berrezueta, an assemblyman from the Citizen Revolution movement, condemned the relocation, arguing that it diminishes Cuenca’s role as the “energy capital” of Ecuador.
He expressed his frustration on social media, stating that the move represents yet another example of the central government’s overreach and neglect of regional interests.
Similarly, Sofia Sanchez, an assemblywoman from the Social Christian Party, criticized the decision as a “centralist setback.” She called for more respect and consideration for Cuenca’s autonomy and development, noting that decisions of this magnitude negatively affect not just the city but the broader southern region of the country.
Cuenca’s Mayor Leads the Resistance
Leading the opposition to the relocation, Cuenca Mayor Cristian Zamora took to his official channels to denounce the government’s decision. He voiced the collective disapproval of Cuenca’s residents, calling the decree “ill-advised” and stating that it contradicts Ecuador’s constitutional principles of decentralization.
The mayor argued that CELEC has historically operated effectively from Cuenca, even during past power crises, thus undermining the justification that moving the headquarters would enhance efficiency.
Zamora has already communicated his concerns to the Ministry of the Interior and has formally requested a review of the decree. He left the door open for potential actions to protect Cuenca’s “legitimate interests,” signaling that local authorities may consider legal or political recourse if the decree is not overturned.
A Larger Debate on Decentralization
The relocation of CELEC’s headquarters touches on a broader, ongoing debate in Ecuador about the balance of power between Quito and the country’s other regions.
Cuenca, often regarded as Ecuador’s “energy capital” due to its strategic importance in the energy sector, has long prided itself on its independence and regional influence.
Many in the city see the relocation as a step backward, reinforcing the perception that Quito remains overly dominant in the country’s political and economic affairs.
For now, the controversy surrounding CELEC’s move is far from resolved, and it remains to be seen whether the government will reconsider its decision in response to the growing opposition. In the meantime, the debate underscores the challenges Ecuador faces in managing its energy crisis while balancing the interests of its various regions.
Didn’t they fail to complete construction of the planned hydroelectric system. Also there were reports that a large percentage of the water piped to the generators leaks away because of lack of maintenance.