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

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 D24, L94, O13, Q41)