ELECTRICITY THEFT DETECTION USING

ARTIFICIAL INTELLIGENCE

Ahsan Rasheed
Nimra Akram
Noor Saba
Supervised By

Engr. Faiza Gull

Submitted for the partial fulfillment of BS Computer Science degree to the Faculty
of Engineering & CS

DEPARTMENT OF COMPUTER SCIENCE

NATIONAL UNIVERSITY OF MODERN LANGUAGES,

RAWALPINDI

March, 2023
 ABSTRACT
Electricity theft is a major problem that affects power grids in many countries, including
Pakistan. This problem not only leads to significant revenue loss for the utility companies but
also results in safety hazards for consumers. Existing methods for detecting electricity theft rely
on manual inspections and are time-consuming and costly.

In this project, we propose the use of artificial intelligence (AI) techniques to automatically
detect electricity theft in real-time. We will use machine learning algorithms and big data
processing techniques to analyze data collected from smart meters and other sensors installed in
the power grid. We will develop a software application that will use the data to identify patterns
and anomalies that indicate electricity theft.

To implement this project, we will use Python programming language, TensorFlow or PyTorch
for machine learning. We will use cloud computing services such as AWS or GCP to provide the
necessary computing and storage resources.

The proposed system has the potential to revolutionize the way electricity theft is detected and
addressed. By automating the detection process, the system can significantly reduce the time and
cost associated with manual inspections. Additionally, the system can help to prevent safety
hazards and improve the overall reliability and efficiency of the power grid.
 Chapter 01
INTRODUCTION
Electricity theft is a serious problem for utility companies, leading to significant financial losses
and service quality issues. Traditional methods of detection are often ineffective, prompting
interest in AI and ML techniques. The proposed system has several advantages over traditional
methods of detecting electricity theft. Firstly, it is automated, which means it can operate 24/7
without the need for human intervention. Secondly, it is more accurate and efficient compared to
manual inspections and customer complaints. Finally, it can detect theft in real-time, allowing
the utility companies to take immediate action and prevent further losses. This project aims to
develop an AI-based system for real-time detection of electricity theft, using machine learning
algorithms to analyze consumption data and identify suspicious patterns. The system is
automated, accurate, and efficient, providing real-time detection and prevention of further losses.

1.1. Project Domain:

The project domain of "Electricity Theft Detection Using Artificial Intelligence" is in the field of
energy management, with a focus on the detection of electricity theft. It involves the use of
machine learning algorithms to analyze consumption data and distinguish between legitimate and
abnormal patterns. The project domain requires expertise in machine learning, data analytics, and
energy management, and has the potential to improve efficiency and reduce costs for utility
companies.

1.2. Problem Identification:

The problem addressed by the project "Electricity Theft Detection Using Artificial Intelligence"
is the detection of electricity theft, which is a significant issue for utility companies worldwide.
Electricity theft occurs when consumers illegally manipulate their meters or steal electricity
directly from the grid, resulting in significant financial losses for utility companies and affecting
the quality of service provided to legitimate customers. Traditional methods of detecting
electricity theft, such as manual inspections and customer complaints, are often time-consuming.

1.2.1. Proposed Solution:

The proposed solution for "Electricity Theft Detection Using Artificial Intelligence" is an AI -
based system that can detect electricity theft in real-time. The system will use machine learning
algorithms to analyze electricity consumption data and identify patterns of abnormal or
suspicious behavior that may indicate theft. The system will also be designed to distinguish
between legitimate deviations in consumption and those caused by theft.

The system will consist of multiple components, including data acquisition, data pre-processing,
feature extraction, and machine learning model development. The system will be trained using a
large dataset of electricity consumption data, including both legitimate and theft instances.
Once deployed, the system will continuously monitor electricity consumption data in real-time,
and identify any suspicious patterns that may indicate theft. If a case of theft is detected, the
system will send an alert to the utility company, allowing them to take immediate action and
prevent further losses.

1.2.2. Objectives:
1. To develop an AI-based system for real-time detection of electricity theft.
2. To provide an efficient and automated system that can detect electricity theft in real-time,
without the need for human intervention.
3. To reduce losses due to electricity theft by detecting and preventing further thefts, allowing
utility companies to take immediate action.
4. To contribute to a more sustainable energy sector by reducing losses due to electricity theft
and promoting responsible energy consumption.

1.2.3. Scope of the Project

The scope of the Electricity Theft Detection Using Artificial Intelligence project is focused on
the development of an AI-based system for real-time detection of electricity theft using machine
learning algorithms. The system will acquire, preprocess, and analyze a large dataset of
electricity consumption data to identify any suspicious patterns that may indicate theft. The
system will also provide an alerting mechanism to notify the utility company in real-time if a
case of theft is detected, allowing them to take immediate action. The system will be designed to
integrate with the utility company's existing infrastructure, allowing for seamless implementation
and operation. The system's boundary is limited to the data acquisition, pre-processing, feature
extraction, machine learning model development, and real-time monitoring of electricity
consumption data. The system will not involve any physical installation of hardware or
modification of existing infrastructure. The system will be used in the context of a utility
company's electricity distribution network to improve the accuracy of theft detection, reduce
losses due to theft, and promote a more sustainable energy sector.

1.3. Effectiveness / Usefulness of the System

The Electricity Theft Detection Using Artificial Intelligence project will be an effective and
useful solution for the utility companies to combat the issue of electricity theft. The proposed
system will significantly improve the accuracy of electricity theft detection using machine
learning algorithms. Compared to the existing systems, which often rely on manual inspections
or simple threshold-based rules, the proposed system can automatically identify suspicious
patterns in real-time, without the need for human intervention. This will not only improve the
effectiveness of theft detection but also reduce the operational costs associated with manual
inspections. Moreover, the proposed system will help in reducing the losses due to electricity
theft, allowing utility companies to take immediate action and prevent further thefts. The
system's real-time monitoring and alerting mechanism will also help the utility companies to be
more proactive in identifying and addressing cases of theft. The system's usefulness and
application will, therefore, lead to a more sustainable energy sector and improved service
delivery for customers.

1.4. Resource Requirement

The resource will depend on the complexity of the algorithm, data availability, and
hardware/software infrastructure. Generally, it will require a powerful computing system, access
to large and diverse data sets, specialized software.

1.4.1. Hardware Requirement:

The hardware requirements for electricity theft detection using artificial intelligence (AI) will
depend on the size and complexity of the system, as well as the amount and quality of data to be
processed. In general, a powerful computing system is required to support the development and
execution of the AI algorithms, including a high-performance processor, sufficient memory and
storage, and a high-speed network connection.

The hardware specifications for AI-based electricity theft detection may vary depending on the
specific needs of the project. However, a general set of specifications could include a multi -core
processor with a clock speed of at least 2 GHz, 16 GB or more of RAM, and a high-capacity
storage device such as a solid-state drive (SSD). A high-speed internet connection is also
recommended for efficient data transfer and communication between the various components of
the system.

Hardware Component Specification

Processor Multi-core, clock speed ≥ 2 GHz
Memory 16 GB RAM or more
Storage High-capacity solid-state drive (SSD)
Network High-speed internet connection
Required Hardware Components and Specification

1.4.2. Software Requirement:

The software requirements will depend on the specific AI algorithm and data processing
techniques used. Generally, a combination of programming languages, machine learning
frameworks, and data analysis tools are required to develop and execute an AI-based electricity
theft detection system.

Python is a popular language for AI-based data processing due to its wide range of libraries and
frameworks, such as TensorFlow and PyTorch, which are used for deep learning and neural
network development.
In addition to programming languages, specialized software tools may also be required for data
preprocessing, feature extraction, and anomaly detection. These tools may include Apache
Spark, or other distributed computing frameworks.

Software requirement Specification

Operating System Windows or Linux
Programming Languages Python
Machine Learning Libraries TensorFlow, Keras
Database Management System MySQL
Integrated Development Environment (IDE) Visual Studio Code
Required Software Tools and Languages

1.4.2. Data Requirement:

The data requirements for electricity theft detection using artificial intelligence (AI) will depend
on the specific algorithm and machine learning techniques used. Generally, a large and diverse
data set is required to train the AI model and to ensure accurate predictions.

The data set include various factors that contribute to electricity theft, such as meter readings,
customer information, billing history, and consumption patterns. The data should also include
details about past instances of theft, such as the location, time, and type of theft.

To ensure accuracy and robustness, the data set will be balanced, representing a variety of
scenarios and outcomes. The data set will also be free of errors, omissions, or inconsistencies, as
these can adversely affect the AI model's accuracy.

The data set can be sourced from various sources, including utility companies.The data set can
be processed using tools such as Apache Hadoop or Apache Spark to clean, preprocess, and
feature engineer the data.
Flowchart:
sss
Start

Electricity
Consumption Data

Data pre-processing

Observing Patterns

No

Is Theft
Detected?

Yes

Notify the Authorized

Performance
Evaluation

End
Summary:
Electricity theft detection using artificial intelligence involves using machine learning algorithms
and techniques to detect instances of electricity theft by collecting and preprocessing data,
extracting relevant features, training and testing the AI model, and deploying the model into a
production environment where it can process real-time data and generate alerts when potential
theft is detected. The system requires a high-performance computer system with a multi-core
processor, large RAM, and a dedicated GPU, along with programming languages like Python,
specialized machine learning libraries like Scikit-learn or TensorFlow, and tools like Apache
Hadoop or Apache Spark. The dataset used to train the AI model should include a large and
diverse set of customer information, meter readings, billing history, and consumption patterns,
along with details about past instances of electricity theft. By implementing an AI-based
electricity theft detection system, utility companies can improve the accuracy and efficiency of
their detection methods, reduce revenue losses due to electricity theft, and enhance customer
service by identifying and addressing issues with energy consumption.

Supervisor Signature:_________________.