Illegal Consumer Practices: An Analysis of Unauthorized Siphoning in the Power Grid

Abstract

This paper investigates energy consumption and some ethical aspects of the practices of fraud and theft of electrical energy. Field research indicated that the practices of fraud and theft of electrical energy are of great relevance to the academic community, but are still little explored. The main objective was to comprehend the consumer‟s perception of illegal forms of electrical energy consumption, including defaulting on bills. Characterized as qualitative and exploratory, the research was carried out through 96 interviews and eight focus groups with consumers selected from the database of the concessionaire and classified as those who had met their obligations, those on default, and those who used illegal practices, such as siphoning off energy. The results indicate that although many reported that the practice of fraud was a form of deviant behavior, it wasn‟t vehemently censored, and they asserted that it was a fairly common practice, verifying its existence both in the suburbs and in the city‟s wealthiest areas. There are factors that encourage these practices and can be categorized as social, related to the economic condition of the consumer and to the ethics of consumers who do not perceive the practice as an illegal one. There is also the aspect of retaliation by the consumer, who justifies his illegal practices by claiming them to be a response to taxes, to the power utility monopoly and even to third-party offers, from neighbors for example, to share their electricity in an illegal way. The main contribution of this paper is to expand the knowledge base on ethical aspects of illegal acts by consumers.