Abstract:
This study investigates the socioeconomic, administrative, and service quality
determinants of electricity theft in Pakistan. The effect of service quality standards on
electricity theft is estimated using panel data from eight electricity distribution utilities
from 2006 to 2018. The results of utilizing the One-step system Generalized Method of
Moments estimator confirm the statistically significant impact of social, administrative,
and service quality variables on the illegal use of electricity. Based on the findings,
Pakistan's National Electric Power Regulatory Authority is advised to take measures to
improve the quality of services. In contrast, the nation’s Central Power Purchasing Agency
is advised to improve administrative structure by separating retail function from
distribution by electric distribution.
