Power-Meter Shift to Cut $10 Billion Brazil Market by 50%

Brazil’s decision to weaken a proposal for boosting energy efficiency by installing smart meters is wiping out half of a $10 billion market that lured foreign manufacturers from Elster Group SE to Echelon Corp.

The nation’s electricity regulator, known as Aneel, this year ruled that a 2010 plan calling for utilities including CPFL Energia SA and Centrais Eletricas Brasileiras SA to install the meters was too costly. Under the revised policy, announced Aug. 8, utilities will install the meters only if a consumer asks for the change, and companies may use cheaper equipment.