Down to the Wire: Leveraging Technology to Improve Electric Utility Cost Recovery

Husnain F. Ahmad, Ayesha Ali, Robyn C. Meeks, Zhenxuan Wang and Javed Younas

American Economic Journal: Applied Economics, 2025, vol. 17, issue 4, 60-99

Abstract: We study the effects of a technical intervention in Karachi, Pakistan—converting bare distribution wires to aerial bundled cables (ABCs)—that was intended to prevent illegal grid connections and improve utility cost recovery. Theft-resistant cables reduced losses. This occurred primarily through decreases in unbilled consumption, with the number of formal utility customers and their billed consumption both increasing. Load-shedding outages decreased. In areas with these cables installed, consumers have more appliances and higher electricity-related expenditures. Revenue recovery rose, but consumers' billing-related complaints also increased.

JEL-codes: D24 L94 O13 Q41 (search for similar items in EconPapers)
Date: 2025
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DOI: 10.1257/app.20230468

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