Evaluation and effective management of nontechnical losses in power networks

Market-driven economies and deregulated electricity industry environment have stimulated the minimization of technical and non-technical losses (NTL) even though they do not constitute major operational or quality of supply problems. Their impact is economic and utilities often passed down the costs to consumers. NTL need to be addressed to determine the overall performance of power networks, as these losses are expected to be more dominant at the sub-transmission (132kV-33kV) and reticulation (22kV and 11kV) levels of the electricity supply industry value chain. In some national grid operations, NTL are estimated to account for up to 30% in revenue losses to electric utilities, and overhead expenditure in added maintenance costs. This paper discusses a method for NTL evaluation and an effective management approach to loss minimization and revenue collection.