Reducing Electricity Theft with Incentives

Electricity theft in the developing world affects utilities’ ability to provide safe, affordable, and reliable energy services. In Bihar, India, nearly 65% of households with electricity access report that they have it for less than 8 hours a day. This project tests whether informational nudges and financial incentives curb electricity theft, and thus, increase revenues. Researchers conduct a randomized evaluation in Bihar in partnership with a smart meter provider and a large electricity distribution company in Bihar. Treatment measures include social engagement through educating and communicating consumers’ concerns, as well as installing smart meters to remotely measure consumption. Results forthcoming.