Electricity theft: Analysis of the underlying contributory factors in Ghana

Developing countries, including Ghana, are grappling with a high rate of electricity theft; it is affecting the income generation capacity of their utility companies. The infrastructure deployed by these utility companies to detect and control electricity theft are poor resulting in an immense loss of revenue. This study was undertaken to identify the underlying contributory factors that encourages electricity theft in Ghana. Studies undertaken in other countries revealed that, electricity theft is as a result of economic and political reasons such as poverty and unemployment. Using data captured from the Ashanti Region, which is the most populous region in Ghana, we studied the factors that cause electricity theft and ranked them in order of the most significant. In this study, higher electricity prices, poor quality of power supplied, corruption, poor enforcement of the law against electricity theft, and the PURC not fighting for the interest of consumers were found to be the main causes of electricity theft. Other factors are attitudinal, illiteracy, unemployment, and poverty.