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The determinants of electricity theft: An empirical analysis of Indian states

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  • Gaur, Vasundhara
  • Gupta, Eshita

Abstract

More than 20% of the electricity generated in India is lost to rampant thefts. Drawing data from 28 states of India over a time span of five years (2005–2009), this paper examines the role played by socio-economic and governance factors in determining the extent of electricity thefts in Indian states. Results from the Feasible Generalised Least Squares (FGLS) model demonstrate that lesser corruption, higher state tax to GDP ratio, greater collection efficiency of electricity bills by state utilities, higher share of private installed capacity, lesser poverty, greater literacy and greater income are closely associated with lesser power thefts. A better understanding of the key determinants of thefts in electricity distribution is vital for policy makers for designing policies.

Suggested Citation

  • Gaur, Vasundhara & Gupta, Eshita, 2016. "The determinants of electricity theft: An empirical analysis of Indian states," Energy Policy, Elsevier, vol. 93(C), pages 127-136.
    • Handle: RePEc:eee:enepol:v:93:y:2016:i:c:p:127-136
    DOI: 10.1016/j.enpol.2016.02.048
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    3. 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.
    4. 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.
    5. Zeeshan Aslam & Nadeem Javaid & Ashfaq Ahmad & Abrar Ahmed & Sardar Muhammad Gulfam, 2020. "A Combined Deep Learning and Ensemble Learning Methodology to Avoid Electricity Theft in Smart Grids," Energies, MDPI, vol. 13(21), pages 1-24, October.
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    8. Wong, Jason Chun Yu & Blankenship, Brian & Urpelainen, Johannes & Ganesan, Karthik & Bharadwaj, Kapardhi & Balani, Kanika, 2021. "Perceptions and acceptability of electricity theft: Towards better public service provision," World Development, Elsevier, vol. 140(C).
    9. Peter Kwadwo Adusei & Eric Oduro-Ofori & Owusu Amponsah & Kwasi Osei Agyeman, 2018. "Participatory incremental slum upgrading towards sustainability: an assessment of slum dwellers’ willingness and ability to pay for utility services," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 20(6), pages 2501-2520, December.
    10. Jamil, Faisal & Ahmad, Eatzaz, 2019. "Policy considerations for limiting electricity theft in the developing countries," Energy Policy, Elsevier, vol. 129(C), pages 452-458.
    11. Mehta, Tarun & Sarangi, Gopal K., 2022. "Is the electricity cross-subsidization policy in India caught between a rock and a hard place? An empirical investigation," Energy Policy, Elsevier, vol. 169(C).
    12. Razavi, Rouzbeh & Gharipour, Amin & Fleury, Martin & Akpan, Ikpe Justice, 2019. "A practical feature-engineering framework for electricity theft detection in smart grids," Applied Energy, Elsevier, vol. 238(C), pages 481-494.
    13. Athar Mahmood & Xiukang Wang & Ahmad Naeem Shahzad & Sajid Fiaz & Habib Ali & Maria Naqve & Muhammad Mansoor Javaid & Sahar Mumtaz & Mehwish Naseer & Renji Dong, 2021. "Perspectives on Bioenergy Feedstock Development in Pakistan: Challenges and Opportunities," Sustainability, MDPI, vol. 13(15), pages 1-24, July.
    14. 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.
    15. Andrey Pazderin & Firuz Kamalov & Pavel Y. Gubin & Murodbek Safaraliev & Vladislav Samoylenko & Nikita Mukhlynin & Ismoil Odinaev & Inga Zicmane, 2023. "Data-Driven Machine Learning Methods for Nontechnical Losses of Electrical Energy Detection: A State-of-the-Art Review," Energies, MDPI, vol. 16(21), pages 1-33, November.
    16. Adongo, Charles Atanga & Taale, Francis & Bukari, Shaibu & Suleman, Shafic & Amadu, Iddrisu, 2021. "Electricity theft whistleblowing feasibility in commercial accommodation facilities," Energy Policy, Elsevier, vol. 155(C).
    17. Ghosh, Ranjan & Goyal, Yugank & Rommel, Jens & Sagebiel, Julian, 2017. "Are small firms willing to pay for improved power supply? Evidence from a contingent valuation study in India," Energy Policy, Elsevier, vol. 109(C), pages 659-665.
    18. Jin Kathrine Fosli & A. Amarender Reddy & Radhika Rani, 2021. "The Policy of Free Electricity to Agriculture Sector: Implications and Perspectives of the Stakeholders in India," Journal of Development Policy and Practice, , vol. 6(2), pages 252-269, July.
    19. 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).
    20. Yousef Abdel Jawad & Issam Ayyash, 2020. "Analyze the Loss of Electricity in Palestine Case Study: Ramallah and Al-Bireh Governorate," International Journal of Energy Economics and Policy, Econjournals, vol. 10(1), pages 7-15.
    21. Miller, Mark & Alberini, Anna, 2016. "Sensitivity of price elasticity of demand to aggregation, unobserved heterogeneity, price trends, and price endogeneity: Evidence from U.S. Data," Energy Policy, Elsevier, vol. 97(C), pages 235-249.
    22. 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).

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