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DISTRIBUTION SYSTEM’S LOSS RISK MANAGEMENT

Factors/Risks associated with increase in distribution’s systems loss

Increase in utility’s system’s kWh loss can be attributed to many factors. We all know that the components of a utility’s systems loss can be from technical loss or from non-technical loss. As a review, technical loss is the inherent properties of electrical equipment and devices during operation while non-technical loss is the result of electricity pilferage, error in meter reading, etc. 


An electric distribution utility’s goal in dealing with losses includes the reduction of over-all system’s loss to the least possible level. However, there are some events or situations that greatly affect the over-all value of the kWh lost. Identifying these risks is of great importance since the effect of this can be felt for a long period of time especially for utilities which rely on cumulative computation of losses.

Enumerated below are the typical risks faced by an electric utility which if not taken cared of can greatly impact the kWh loss and the revenue of the company.

Increase in Electricity Pilferage - Electricity Pilferage is a component of system's loss particularly in non-technical loss. An increase in the volume of electric pilferage due to increase of number of cases or decrease in apprehension activities affects greatly the over-all system's loss. Some causes of these increases can be linked to the lack of apprehending personnel to catch these violators, the presence of syndicated pilferers which operates in large number and from undetected power customers who engages in pilferage.

Increases in Unbilled/Erroneously Billed Customers - Unbilled customers are a connected customer who utilizes electricity but are not read/billed due to records and maintenance issues. Unbilled electricity can also affect the company’s systems loss reporting. One known cause of this risk is from poor meter inventory and recording. There are some cases especially during emergencies where the meters are installed in the site and no proper recording and tagging was done thus the customer is enjoying the use of electricity and not being billed for its consumption.

High Loss Distribution Network Configuration – An Electric Distribution System is a network of line and substation interconnections which if not configured strategically can produce high technical losses. This happens when overloading of distribution lines are present caused by sudden increase in loads or undersized wires. As we all know, wires with smaller size produces more loss compared to wires with larger size.

These are just some of the typical risk faced in managing system’s loss in a distribution utility. Any of these three factors can influence whether to improve or worsen the present situation.

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