Electricity Consumers and Compliance: Trust, Reciprocity, and Socio-economic Factors in Uttar Pradesh

Under Saubhagya scheme, Uttar Pradesh added the largest number of households to its existing consumer base – as many new consumers as served by state distribution companies (discoms) before the launch of the scheme. Household consumption significantly impacts the overall financial position of discoms and the state. Any discussion on losses and theft calls for an evaluation of the services provided by discoms. Electricity loss other than that attributable to technical reasons may be broadly classified into hard theft and metering, billing, and collection (MBC) losses. Hard theft refers to theft as defined under Section 135 of the Electricity Act-2003 (referred to as Act) and entails, mainly, theft due to hooking of wires (katiya), meter tampering, and unauthorized electricity usage, and includes wilful misrepresentation of electricity consumption. This study, in the meanwhile, was carried out to improve understanding of the discom–consumer dynamics in UP and how it manifests in supply outcomes for the consumer. This study further aims to: · unpack the commercial losses attributed to domestic consumers; · capture the consumer perspective and actions (or lack thereof) in the midst of the administrative reform underway; and · explore how this reform can help drive targeted activities to improve compliance, satisfaction, and create a virtuous cycle for the utility business in the state.