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

American Economic Journal:
Applied Economics

ISSN 1945-7782 (Print) | ISSN 1945-7790 (Online)

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

  • Husnain F. Ahmad
  • Ayesha Ali
  • Robyn C. Meeks
  • Zhenxuan Wang
  • Javed Younas
American Economic Journal: Applied Economics (Forthcoming)

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.

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