Explanation of Unofficial Electricity Access

What happens here

An individual standing on a street in what appears to be a Brazilian favela begins to explain how residents access electricity without paying for it. He points upwards to a tangled array of overhead electrical wires, indicating the source of these unofficial connections. He clarifies that while homes on main streets with registered addresses are billed by the government for utilities, residences located in alleys or less formalized areas often lack official addresses. Because these homes are not registered, their occupants do not 'exist' to the government or utility companies, thus they are not billed for electricity or water. He states that he himself has benefited from this system for thirty years without paying for utilities.

Goal: Understand the mechanism behind 'free' electricity in favelas.