(1) At the present time, the electricity distribution system,is monitored with the use of after-the-fact indicators such as interruption reports, meter readings, and activating trouble alarms. (2) This system is inadequate in two respects: first, it fails to give an accurate picture of the distribution system. (3) Last year electricity overproduction reached 7%, as a result, the utility recorded a loss of $273 000. (4) Second, it is expensive. (5) Escalating labor costs and an increasing number of remote residences has led to higher costs of both connecting to electricity grid and maintenance. (6) Last year, reading the meters of 12 000 such residences cost addittional $960 000. (7) The proposed pilot project was developed as a result of an on-site visit at the utility’s premises and implements a radio-based distribution monitoring system using the Auto-Grid softwear designed at Wrocław University of Science and Technology in accordance with International Energy Agency recommendations.(8) The basic system consists in a base unit, a radio link, and a remote unit. (9) It is a feasible alternative to the current methods due to it is more accurate than after-the-fact indicators currently used, small enough to replace existing meters, and simple usage. (10) Initial capital costs would be recouped within 3.9 years. (11) The basic system should be installed on a trial basis, if the trial proves successfull, the radio based system could provide a long term solution to the current problems of inaccurate and expensive data collection.