Ecuador loses almost 16% of its electric production to theft and technical failures

As some parts of the country are experiencing blackouts, a government agency that reviews electric usage reports that 15.86% of total generation in 2025 was lost to theft and technical problems. It added that total losses appear to be increasing in 2026.

A government regulation agency says the country loses almost 16% of its electricity to theft and technical problems.

The Agency for the Regulation and Control of Electricity (Arconel) says the loss of 5,100 gigawatts hours is equivalent to three-fourths of the annual production of Coca Codo Sinclair hydroelectric plant.

Since early April, Guayaquil, Quito and five other cities have reported power suspensions of as long as 12 hours due to overloaded electrical substations in urban areas. Energy Minister Inés Manzano says the substations reached their maximum capacity due to a coastal heat wave and other problems. She announced last week that $78 million has been allocated to repair and replace defective equipment.

Although Manzano said the electrical generation system, 70% of which is hydroelectric, is operating at maximum capacity, she insists there will be no nationwide blackouts similar to those imposed in 2024. Several energy experts, however, claim the system is in “imminent danger” of collapse without increased generation.

In its 2025 annual report, Arconel said 5.9% of electricity loss was due to technical issues. “While some of this loss will always occur, much of it is the result poorly functioning equipment in transmission lines, electrical substations, transformers and local connections,” the report said. “Loss due to these factors could be reduced to less than half of this amount if infrastructure is upgraded.”

A much larger source of loss, says Arconel, is theft. “The system suffers a much higher rate of theft than those of other countries in the region through illegal connections, meter tampering, direct theft of energy from poles, and manipulated billing,” it says. “In total, the theft in 2025 amounted to 9.96% of total electrical usage, or 3,245.00 GWh.”

The report recommended increased law enforcement action, especially in cities and provinces with the high rates of theft, particularly in Manabí and Esmeraldas Provinces. Total losses to theft amounted to 22.29% of electric usage in Manabí Province and 19.5% in Esmeraldas Provinces in 2025. “These numbers are outrageous and should be addressed immediately. The theft puts unneeded stress on the national power grid.” The report recommended that the government establish a special anti-theft unit to monitor the power grid.

Arconel said that electric theft has increased rapidly since 2020. “Ten years ago, in 2016, the transmission system lost 4% of total generation to theft. Little has been done to address the problem.”