Majuro, Marshall Islands – The recent performance metrics from MEC demonstrate remarkable progress in revenue protection and operational efficiency. The utility has achieved substantial financial recovery through targeted inspections and strengthened commercial processes while significantly reducing energy losses. This comprehensive improvement strategy has yielded measurable results that will benefit both the organization and its customers.
System Losses Reduced to 19.5% Since June 2024
MEC has demonstrated exceptional progress in reducing energy losses in its system from a concerning 26.5% at the beginning of 2024 to 19.5% by the end of the year. This 7% reduction outpaces the industry average improvement rate of just 1-2% annually, positioning MEC as a regional leader in loss reduction efficiency.
According to the International Energy Agency (IEA), the average utility in developing markets operates with system losses between 15-22%, while developed markets typically maintain losses below 10%. MEC’s aggressive reduction has moved the utility from significantly underperforming regional benchmarks to approaching competitive standards in just one year—an achievement that typically requires 3-5 years of sustained effort according to World Bank utility performance studies. This accelerated improvement represents a significant operational achievement in the utility sector, where each percentage point in system losses typically equates to approximately $600,000-$800,000 in annual revenue impact for a utility of MEC’s size.
The downward trend illustrated in the chart shows consistent month-over-month improvements, with the most substantial decreases occurring between months 3 and 5. This steady progress shows that MEC’s new commercial processes and revenue protection measures are creating lasting changes, not just short-term fixes. The improvements are built into MEC’s regular operations and address the root causes of energy losses.
For MEC’s customers, this reduction in energy losses translates to several long-term benefits:
- Improved Service Reliability: Enhanced system efficiency means more stable electricity supply with fewer technical interruptions.
- Lower Costs, Stable Prices: When less energy is lost in the system, MEC saves money. These savings help keep your electricity bills from going up as much in the future.
- Enhanced Grid Stability: Reduced losses contribute to overall grid stability, which is particularly crucial as energy demand continues to grow.
In the long term, customers can expect improved service reliability and potentially more favorable electricity tariff structures as MEC’s operational efficiency continues to improve. The ongoing decrease in losses shows that MEC is getting better at its core operations. These improvements will help provide reliable electricity service for a long time.
More Than $4 Million Back-Billed in Lost Revenue
The revenue recovery efforts have yielded impressive financial results. MEC has successfully recovered 9,559,836 kWh of energy and back-billed approximately $4,141,077 in lost revenue during 2024. This substantial recovery demonstrates the effectiveness of the enhanced revenue protection measures.
The chart shows varying monthly recovery amounts, with particularly strong performance in July and November, indicating targeted and strategic inspection activities. The relationship between recovered kWh and recovered USD suggests an effective back-billing process that appropriately values the lost energy.
This recovered revenue strengthens MEC’s financial position, enabling greater investment in infrastructure improvements and service enhancements. For customers, this means that the utility can fund necessary upgrades and maintenance without placing additional financial burden on compliant ratepayers.
The successful recovery of previously lost revenue also helps distribute costs more equitably across the customer base by ensuring that all energy consumption is properly accounted for and billed. This fair distribution of costs is essential for maintaining reasonable rates for all customers while ensuring the utility’s financial sustainability.
More Than 1300 Inspections Conducted Since June 2024
The foundation of MEC’s success has been a robust inspection program, with more than 1300 inspections conducted between June 2024 and January 2025. The monthly inspection data reveals a strategic approach, with particularly high volumes in June (328 inspections), September (244 inspections), and August (230 inspections).
While the number of inspections has decreased in recent months, with January showing only 51 inspections, this likely reflects a more targeted approach based on insights gained from earlier inspection activities. The correlation between the inspection program and the reduction in system losses suggests that MEC has effectively identified and addressed key sources of revenue leakage.
For customers, the comprehensive inspection program provides assurance that MEC is actively working to ensure all users contribute fairly to the system’s operational costs. The inspection program by MEC’s Commercial and Revenue Protection Unit (C&RPU) makes billing fair for everyone. When MEC finds and bills people who aren’t paying for their electricity use, honest customers don’t have to pay higher rates to cover these losses. This keeps bills reasonable for those who follow the rules.
The inspection program also serves as a deterrent against future energy theft or meter tampering, contributing to a more transparent and equitable utility system that benefits all legitimate customers in the long run.
One of many tampered meters found by MEC inspectors
Conclusion – Join the Fight Against Energy Theft
MEC will continue to sharpen its commercial processes and strengthen revenue protection measures in 2025, delivering you improved service reliability, creating potential opportunities for more favorable rate structures, and ensuring everyone pays their fair share. The remarkable turnaround in 2024 proves MEC’s unwavering commitment to operational excellence and financial responsibility.
But we cannot win this battle alone. Energy theft affects everyone in our community, adding costs and compromising service reliability for honest customers. You play a crucial role in this ongoing effort. By reporting suspicious meter tampering, unauthorized line connections, or unusual activity near electrical infrastructure, you directly contribute to keeping electricity affordable and reliable for all.
Together, we can create an electricity system that works fairly for everyone. Your vigilance makes a difference, and your cooperation helps us build a stronger, more equitable system for our entire community.
Remember our community protection motto: “When You See Something; Say Something.”
Acknowledgment of Support
MEC extends its sincere gratitude to the Asian Development Bank (ADB) for their invaluable support in establishing and implementing the C&RPU at MEC. The ADB’s financial assistance and strategic guidance have been instrumental in building the strong team at MEC that achieved these impressive results. This partnership exemplifies how international development collaboration can drive tangible improvements in utility performance and community service delivery.
