Economics of Electricity Losses in Latin America and the Caribbean

Despite significant progress and reforms in Latin America and the Caribbean, the electricity markets continue to face substantial inefficiencies. One of the most concerning and persistent indicators is the high level of electricity losses, which generate social, environmental, and economic costs. These losses adversely impact the quality of electrical services, disproportionately affecting the most vulnerable segments of the population. Furthermore, they jeopardize the sustainability of the electric sector, which is crucial for bridging investment gaps in infrastructure and facilitating the energy transition. This book provides a comprehensive analysis of the magnitude and causes of these losses within the region, proposing policy options based on regional experiences. We hope that the analyses and policy implications presented herein will contribute to effectively tackling the issue of losses while fostering discussions aimed at achieving an efficient, equitable, and sustainable regional electricity market.