Brazil Electricity Theft Reaches 15‑Year High, Costing Billions

In 2025, illegal electricity connections known locally as “gatos” siphoned 45 terawatt‑hours (TWh) of power from Brazil’s grid, the highest volume recorded in the last 15 years, according to data from the national electricity regulator Aneel and the distributors’ association Abradee. This amount equals about 7.1% of the country’s total electricity generation for the year.

The stolen energy would have been enough to meet Brazil’s nationwide electricity demand for approximately 26 days—almost a full month—and is 47% greater than the total output of the Belo Monte hydroelectric plant in 2025.

The financial impact is substantial. Aneel and Abradee estimate the loss at roughly R$ 11.5 billion (about USD 2.1 billion at recent exchange rates). Of this, R$ 7.9 billion (≈ USD 1.4 billion) was passed on to consumers through higher tariffs, while the remaining R$ 3.6 billion (≈ USD 0.65 billion) was absorbed by the distribution companies.

Scale of the problem

President of Abradee Patricia Audi described the figure as a sign that electricity theft has moved from isolated incidents to a structural issue intertwined with public safety challenges. “We are facing the largest absolute volume of energy stolen in the past 15 years,” she said, noting that the power is consumed but never recorded, creating losses that affect every paying customer.

The phenomenon is not evenly distributed. A separate Enel analysis cited in the same report shows that the electricity stolen in just ten municipalities of Rio de Janeiro state could power more than 2.2 million people for an entire year.

Official response and context

Aneel, the Agência Nacional de Energia Elétrica, oversees regulation of Brazil’s electricity sector, setting tariffs and monitoring service quality. Abradee, the Associação Brasileira de Distribuidores de Energia Elétrica, represents the utilities that deliver power to end users and compiles industry statistics.

While the government has periodically launched inspections and fines to curb illegal connections, the persistence of the practice highlights gaps in enforcement and the social factors that drive residents to tap into the grid without metering, especially in informal settlements.

Broader implications

The theft distorts the economics of power supply: utilities must recover lost revenue through tariff adjustments, which raises costs for honest consumers and can undermine confidence in the system. At the same time, the volume of stolen energy represents a significant share of renewable generation, potentially affecting Brazil’s ability to meet its clean‑energy targets.

Experts warn that without a coordinated strategy that combines better metering, community outreach, and targeted law enforcement, the problem is likely to persist, continuing to siphon resources from the sector and inflate electricity bills nationwide.

Historical trend and comparisons

Historical data from Abradee shows that electricity theft hovered around 30 TWh per year in the early 2010s, rising gradually to about 38 TWh by 2020. The jump to 45 TWh in 2025 marks the steepest annual increase in the dataset, underscoring a rapid deterioration in grid security.

For comparison, the total electricity consumption of Brazil in 2025 was approximately 630 TWh. The stolen 45 TWh therefore accounts for more than one‑seventh of the national demand, a proportion that few other large economies experience to such an extent.

Mitigation efforts and outlook

Utility companies have deployed smart meters and increased inspection crews in high‑loss areas, yet the cost of such measures often outweighs the recovered revenue in the short term. Policymakers debate whether stricter penalties or social tariff adjustments would better address the root causes.

As Brazil continues to expand its renewable energy portfolio and seeks to attract investment in power infrastructure, reducing non‑technical losses like electricity theft will be essential to ensure that the benefits of growth reach all consumers rather than being eroded by illicit consumption.