Energy’s dark side: tracing the impact of electricity theft on power quality deterioration in emerging markets

Purpose Electricity theft is a chronic issue that undermines the power quality and reduces the financial stability of power distribution companies. This study aims to empirically investigate the factors affecting electricity theft and its impact on power quality in rural and urban regions of India. Design/methodology/approach This research involves two cross-sectional surveys using self-administered questionnaires: Study R comprises 480 rural respondents, while Study U comprises 461 urban respondents to assess the causes of electricity theft. Data analysis was conducted using the statistical package for social science and the partial least squares-structural equation modelling technique. Findings The findings revealed that corruption, economic and government factors significantly influence electricity theft, while technology factors insignificantly influence electricity theft in both studies. However, in Study R, social factors had a statistically significant impact, but in Study U, it had an insignificant impact on electricity theft. Furthermore, the findings also reported a substantial link between electricity theft and power quality deterioration. Practical implications The study is unique and more generalisable, providing valuable insights to the government to develop a well-planned stringent law to enhance electricity service quality and reduce electricity theft cases that can benefit the entire community. Further, this study shed light on contributing factors of electricity theft to improve power quality that can assist in achieving the (sustainable development goal 7 – reliable, affordable and sustainable energy) mission of the Indian Government. Originality/value To the best of the authors’ knowledge, the present study represents the initial study to examine the notion of Indian electricity users regarding power theft and quality deterioration among India’s rural and urban regions. That would provide a base for the government and electricity board to combat power theft and provide a quality power supply. Moreover, this study offers a robust theoretical model with the new latent variable for a current and pertinent topic.