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

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Listed:
  • Husnain F. Ahmad
  • Ayesha Ali
  • Robyn C. Meeks
  • Zhenxuan Wang
  • Javed Younas

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.

Suggested Citation

  • Husnain F. Ahmad & Ayesha Ali & Robyn C. Meeks & Zhenxuan Wang & Javed Younas, 2025. "Down to the Wire: Leveraging Technology to Improve Electric Utility Cost Recovery," American Economic Journal: Applied Economics, American Economic Association, vol. 17(4), pages 60-99, October.
    • Handle: RePEc:aea:aejapp:v:17:y:2025:i:4:p:60-99
    DOI: 10.1257/app.20230468
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    More about this item

    JEL classification:

    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • L94 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Electric Utilities
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • Q41 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Demand and Supply; Prices

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