One of the largest pitfalls for any distribution network is the level of energy losses suffered by the system. These losses fall into two categories: technical and non-technical. Technical losses depend largely on the physical properties of the network, while non-technical losses (sometimes a more significant form of losses) are the result of theft or fraud caused by meter tampering, false reading, illegal connections or unpaid bills. In Lebanon, the levels of total losses are around 50% resulting in an annual deficit of more than 225 million US dollars. Despite the frequent breakdowns of the system and evidently unsustainable financial-losses, political consideration makes the sustained pursuit of electricity thieves low on the list of priorities. To overcome these hurdles, the national electricity company in Lebanon, Electricite du Liban (EDL), studied the possibility of using automatic meter-reading (AMR) technology to modernize electricity metering, billing and collection, minimize fraud and maximize revenues. The results of this study and a cost/benefit analysis of the proposed system are summarized in this paper. (C) 2003 Elsevier Ltd. All rights reserved.