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Policy considerations for limiting electricity theft in the developing countries

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  • Jamil, Faisal
  • Ahmad, Eatzaz

Abstract

The study analyzed electricity theft through a three layered principal-agent-client model. The factors that entrench corruption and theft are its beneficial features of lowering the cost of electricity for the consumers and generating private illegal incomes for the corruptible employees. We show that an individual steals electricity only if the subjective pecuniary gains are higher than the associated costs e.g. fine imposed in case of detection or dismissal from job. The study finds that efficiency wages along with higher deterrence and active consumer involvement in reporting the crime can help in combating corruption and pilferage in electricity sector.

Suggested Citation

  • Jamil, Faisal & Ahmad, Eatzaz, 2019. "Policy considerations for limiting electricity theft in the developing countries," Energy Policy, Elsevier, vol. 129(C), pages 452-458.
    • Handle: RePEc:eee:enepol:v:129:y:2019:i:c:p:452-458
    DOI: 10.1016/j.enpol.2019.02.035
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    Cited by:

    1. Hugo Brise o & Omar Rojas, 2020. "Factors Associated with Electricity Theft in Mexico," International Journal of Energy Economics and Policy, Econjournals, vol. 10(3), pages 250-254.
    2. Hugo Brise o & Jessica Rubiano & Rodolfo Garc a & Omar Rojas, 2021. "Factors Associated with Electricity Losses in Colombia," International Journal of Energy Economics and Policy, Econjournals, vol. 11(6), pages 465-470.
    3. Savian, Fernando de Souza & Siluk, Julio Cezar Mairesse & Garlet, Taís Bisognin & do Nascimento, Felipe Moraes & Pinheiro, José Renes & Vale, Zita, 2021. "Non-technical losses: A systematic contemporary article review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 147(C).
    4. Marco Toledo-Orozco & Carlos Arias-Marin & Carlos Álvarez-Bel & Diego Morales-Jadan & Javier Rodríguez-García & Eddy Bravo-Padilla, 2021. "Innovative Methodology to Identify Errors in Electric Energy Measurement Systems in Power Utilities," Energies, MDPI, vol. 14(4), pages 1-23, February.
    5. Babar, Zainab & Jamil, Faisal & Haq, Wajiha, 2022. "Consumer's perception towards electricity theft: A case study of Islamabad and Rawalpindi using a path analysis," Energy Policy, Elsevier, vol. 169(C).
    6. Muhammad Salman Saeed & Mohd Wazir Mustafa & Usman Ullah Sheikh & Touqeer Ahmed Jumani & Ilyas Khan & Samer Atawneh & Nawaf N. Hamadneh, 2020. "An Efficient Boosted C5.0 Decision-Tree-Based Classification Approach for Detecting Non-Technical Losses in Power Utilities," Energies, MDPI, vol. 13(12), pages 1-19, June.
    7. Sandu, Suwin & Yang, Muyi & Phoumin, Han & Aghdam, Reza Fathollahzadeh & Shi, Xunpeng, 2021. "Assessment of accessible, clean and efficient energy systems: A statistical analysis of composite energy performance indices," Applied Energy, Elsevier, vol. 304(C).
    8. Nadeem, Ahmad & Arshad, Naveed, 2021. "A data-driven approach to reduce electricity theft in developing countries," Utilities Policy, Elsevier, vol. 73(C).
    9. Daniel Leite & José Pessanha & Paulo Simões & Rodrigo Calili & Reinaldo Souza, 2020. "A Stochastic Frontier Model for Definition of Non-Technical Loss Targets," Energies, MDPI, vol. 13(12), pages 1-20, June.
    10. Gautier, Axel & Nsabimana, René & Walheer, Barnabé, 2023. "Quality performance gaps and minimal electricity losses in East Africa," Utilities Policy, Elsevier, vol. 82(C).
    11. Fernando de Souza Savian & Julio Cezar Mairesse Siluk & Tai s Bisognin Garlet & Felipe Moraes do Nascimento & Jose Renes Pinheiro & Zita Vale, 2022. "Non-technical Losses in Brazil: Overview, Challenges, and Directions for Identification and Mitigation," International Journal of Energy Economics and Policy, Econjournals, vol. 12(3), pages 93-107, May.
    12. Muhammad Salman Saeed & Mohd Wazir Mustafa & Nawaf N. Hamadneh & Nawa A. Alshammari & Usman Ullah Sheikh & Touqeer Ahmed Jumani & Saifulnizam Bin Abd Khalid & Ilyas Khan, 2020. "Detection of Non-Technical Losses in Power Utilities—A Comprehensive Systematic Review," Energies, MDPI, vol. 13(18), pages 1-25, September.
    13. Hugo Brise o & Omar Rojas, 2020. "Factors Associated with Electricity Losses: A Panel Data Perspective," International Journal of Energy Economics and Policy, Econjournals, vol. 10(5), pages 281-286.
    14. Wabukala, Benard M. & Mukisa, Nicholas & Watundu, Susan & Bergland, Olvar & Rudaheranwa, Nichodemus & Adaramola, Muyiwa S., 2023. "Impact of household electricity theft and unaffordability on electricity security: A case of Uganda," Energy Policy, Elsevier, vol. 173(C).
    15. Stracqualursi, Erika & Rosato, Antonello & Di Lorenzo, Gianfranco & Panella, Massimo & Araneo, Rodolfo, 2023. "Systematic review of energy theft practices and autonomous detection through artificial intelligence methods," Renewable and Sustainable Energy Reviews, Elsevier, vol. 184(C).
    16. Sajad Ali & Min Yongzhi & Wajid Ali, 2023. "Prevention and Detection of Electricity Theft of Distribution Network," Sustainability, MDPI, vol. 15(6), pages 1-19, March.

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