It’s a classic vicious circle. Electricity producers work to produce energy for an emerging nation. The people of that nation, unable to afford the energy produced, in desperation risk their lives to access the energy illegally, bypassing meters. The energy producer sees its costs rise and its income reduced, meaning that they don’t invest in cleaner, renewable energy generation, thereby unable to provide cheaper electricity that their customers can afford. Nowhere is this more prevalent than in parts of sub Saharan Africa, particularly in countries with limited resources and infrastructure. estimate that electricity theft in Africa costs the sector billions of dollars every year, leading to financial losses for power companies, increased prices for legal customers, and unreliable electricity supply for many communities. Electricity theft has significant consequences for both the energy sector and society as a whole. It can lead to blackouts, damage to electrical infrastructure, and even fatalities from electrocution. Additionally, it can hinder economic development by discouraging foreign investment and increasing the cost of doing business in affected areas.

But why is this happening and what solutions exist to tackle the issue. In some cases, people may not have access to reliable and affordable electricity, leading them to resort to illegal methods to obtain power. In other cases, electricity theft is a result of corruption, with some individuals or businesses taking advantage of weak enforcement mechanisms to illegally tap into the power grid. Obviously, there are systemic issues that only growing the economy as a whole can fix. This of course implies a competent, non-corrupt government and uncorrupted law enforcement. All of this takes time to deliver and successful outcomes by no means certain.

Fortunately, there are some short-term solutions. For instance, some countries are implementing measures such as increasing penalties for offenders, improving metering technology, and investing in renewable energy sources that are more difficult to steal. However, these efforts often face significant challenges due to the complexity of the issue and the limited resources available for infrastructure development in many parts of the continent. There are several technological solutions to address electricity theft in Africa. Some of these solutions include: Smart metering technology; Prepaid electricity systems and Physical security measures.

Of these Smart Metering appears to be the most interesting from a technology point of view.

The business case for smart metering solutions is clear. Northeast Group a research house focused on Smart Cities and Smart Metering suggests that electricity theft and other so-called “non-technical losses” total $96 billion per year globally (Link). Back in 2011 the Electric Power Research Institute (EPRI) predicted that a fully developed smart grid could save anywhere between $1.3 to $2 trillion, in comparison to the deployment costs, which would be between $338 and $476 billion over 20 years (Link). These are large sums indeed, especially in light of the need to invest in renewables at pace.

Smart meters work by using advanced analytics or in some cases AI to accurately measure and monitor energy consumption. They can detect abnormal energy usage patterns, such as sudden spikes or drops, which may indicate electricity theft. This technology can also enable utilities to remotely monitor and control power usage, reducing the need for physical intervention and preventing tampering. The better solutions manage the whole process of analysing and identifying energy theft, alerting the local field force, record the resolution of the theft and report in detail for subsequent legal action if pursued.

However the goal should not be simply to persecute would-be customers that simply cannot afford energy costs. Until energy is affordable and plentiful in Africa people will find a way to access these resources illegally. The goal should be much bigger: To plough the restored revenue into developing sustainable electricity generation from renewable resources that can eventually drive down the costs of energy and allow those very people affordable access to energy.