Down to the Wire: Leveraging Technology to Improve Electric Utility Cost Recovery
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.
Authors
Zhenxuan Wang
(he/him)
Assistant Professor
I am an applied economist with research interests in environmental, energy, and development economics. The central theme of my work is to understand the impacts of climate change, environmental risks, and energy system transitions, as well as the roles of policy, technological change, and behavioral adaptation in addressing these challenges.