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In Rio de Janeiro, the expansion of areas controlled by gangs has been inflicting great financial losses on the energy sector. The problem is the result of socio-economic problems, absence of the state and presence of criminal groups. In extremely poor areas where the state and other institutions are not present, the gangs regulate everything, including the distribution of energy, which is stolen from regular power lines and sold to local houses by criminals for a fraction of the real value.
A Problem with Many Sides
The problem of energy theft has its origins in socio-economic and public security issues. In recent years, the increase in the area directly controlled by armed groups, such as militias and drug dealers, has prevented the regular operation of the companies that provide energy to Rio de Janeiro city, Light.
Even though drug trafficking tends to be the main source of income for these criminal organizations, many also control the distribution of energy through clandestine connections and make it difficult for the authorized company to carry out inspections and prevent thefts.
In Rio Metropolitan Region, areas under the influence of armed groups rose from 8.7% in 2006 to 20% of the territory in 2021. This expansion represents a 131% increase in the area under control, according to researchers from the Group on New Illegalities, from the Fluminense Federal University (Geni-UFF).
A National Problem
The problem of energy theft is not restricted to Rio, it has grown all over the country since the middle of the last decade. Some energy distributors, such as Amapá distribution company, and Amazonas Energia, in Amazonas, are even facing financial problems.
At the top of the list of energy providers most affected by energy theft, the most serious case is in Amazonas. In 2021, non-technical losses, popularly known as “gatos”, represented 122% of the energy distributed by Amazonas Energia to the regular consumer.
Losses from energy theft affect both consumers and companies. In the case of theft, today, 70% of the financial losses are passed on to the regular customer’s tariff, the other 30% are assumed by the distributor.
The regulatory agency Aneel, calculated that, in 2022, the loss with thefts reached R$ 5 billion, which represents about 3%, on average, of the value of the tariff paid by the consumer.
Source: EPBR.
