Las Lenas Argentina (August 20 - 30?)

By Andrew J. Barden and Eliana Raszewski

July 9 (Bloomberg) -- Buenos Aires recorded its first snowfall in more than 30 years, threatening to exacerbate an energy shortage in the country that has forced the government to reduce electricity and natural gas supplies to businesses.

It's the first time since 1973 that Buenos Aires experienced any snowfall, according to the national meteorological center. With temperatures set to decline overnight, the city may record significant snow cover for only the second time since June 22, 1918.

``We may have lower thermometer readings later today and tomorrow, increasing the chance that snow crystals will take longer to melt,'' said Carlos Benitez, chief of the weather center. ``The day isn't yet over and the temperature is going to continue to drop.''

It was 1.8 degrees Celsius (35 Fahrenhiet) at about 3 p.m. local time. Buenos Aires residents, most of whom are on holiday today for Argentina's Independence Day, ran to the streets to catch the snowflakes.

To ensure sufficient residential energy, President Nestor Kirchner has in the past month asked 4,000 companies to curtail electricity use and applied gas restrictions to about 900 businesses.

Argentina's demand for electricity has soared with four years of economic growth above 8 percent. At the same time, lower-then-expected rainfall has cut electricity output at hydro-electric dams. Natural gas consumption jumps in the winter as Argentines use the price-controlled fuel to heat poorly- insulated homes, while demand for electricity also rises, boosting the need for gas from power generators.

Power Demand

Kirchner blames utility companies for failing to make new investments in exploration and production. Demand for electric power rose 6.3 percent in the first quarter, compared with a 4.4 percent increase in supply, according to Investigaciones Economicas Sectoriales, a Buenos Aires economic-research company.

The Southern Hemisphere's winter also brought snow to Johannesburg last month, which recorded its first confirmed snowfall for almost 26 years.

To contact the reporters on this story: Eliana Raszewski in Buenos Aires eraszewski@bloomberg.net