Brazil increases penalties for electricity theft amid rising fraud

Energy utility companies in Brazil are reporting significant losses due to electricity theft and fraud. CPFL Paulista identified 1,436 irregularities in its concession area during the first half of 2026, recovering over 2 million kWh. In the Campinas region alone, 346 irregularities were recorded, representing 454,000 kWh recovered.

In response to these practices, new legislation (Law No. 15,397/2026) has increased the penalties for simple energy theft. The maximum prison sentence has risen from four to six years. Because the maximum penalty now exceeds four years, police authorities can no longer grant bail at the police station, meaning suspects remain detained until a custody hearing.

Utility provider EDP is also combating theft through artificial intelligence and field inspections. Between January and July, EDP conducted 7,991 inspections, recovering 17.729 GWh of energy. Authorities note that electricity theft poses safety risks such as fires and shocks, while also impacting electricity tariffs and reducing tax revenue for public services.