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WHAT IS "LOSS"?

What is "LOSS"? My friend Merriam may define Loss as a measure of the power lost in a system, as by conversion to heat expressed as a relation between power input and power output, as the ratio or difference between the two quantities. To put in a simpler context, it is simply a failure to make good use of something.
In a distribution utility's point view,on the other hand, loss is a portion of the purchased energy that was not included in the energy sold, and of course, this has a monetary equivalent as well.

This lost energy may come from so many reasons, one of which, and the most logical one is because of technical issues. Due to its electrical in nature, a power system is always gonna be subjected to loss. Loss is a reality that any utility must face. Another cause of loss in the system is the non-technical one, these may include pilferage and administrative use.
Since we will be focusing more on the utility's perspective regarding system's loss, let me summarized what energy loss is really all about. 

This can all be explained by the equation; Loss = Purchased Energy-Sold Energy.



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