Non-Technological Losses

Non-technical losses present a significant economic impact to any energy distribution company, but also may prove to be a lifeline if the company manages to recover them, adding to its revenues. Such recovery, however, can only be done by planning and implementing multi-disciplinary loss prevention capabilities combined with quality data and information related to customers and their consumption.

We can put together a team of experienced experts to support you in developing and operational model, complete with procedures for identification, quantification, evidence collection and processing, and recovery actions. This would also include the implementation of the right organizational structures dedicated to loss recovery.


More about this service

Data analysis
  • In our context, this refers to the data mining and processing activities related to consumption indices and other auxiliary data from the billing, customer and technical systems in order to identify abnormal trends which should be investigated by field teams on site;
  • It can predominantly identify meter fraud and collusion. It can also identify some illegal connections opened through the connection of a legitimate customer ;
  • It cannot identify illegal connections opened directly through the distribution network.

Consumer mapping and energy balance
  • In our context, this refers to the correct mapping of the location of each consumer in the billing and network management systems;
  • The overall aim is to be able to produce and “energy balance” of incoming and outgoing electricity at each network point (station, substation, line, etc)
  • Through this method, field teams can be guided to the possible locations where energy may be lost as a result of illegal connections made through the distribution network.

Field teams
  • In our context, this refers to the people who perform field interventions. They are supposed to investigate the data analysis results as well as various signals and tip-offs through the internal channels of the Company and from outside;
  • They are responsible to detect electricity theft, replace defrauded meters, collect evidence, initiate disconnections, calculate damages and issue the relevant invoice on the field;
  • Teams should be trained in operational interventions and self-defence against possible attackers;
  • All legal authorizations to issue the required documentation on the field should be pre-approved;
  • Teams should collaborate with law enforcement agents while making visits into “danger” zones.

How we can support you
  • Analysis of your customer contracting, connection, metering, billing, technical service and collection processes;
  • Identification of gaps related to controls geared to combat non technical losses and electricity theft;
  • Discussion with field engineers and technical service staff in order to identify the various ways in which non technical losses can be caused, namely
     - Types of meter fraud and their impact on consumption indices read
     - Illegal connections, their frequency, severity, and impact on energy balances across the distribution network
     - Planning for advanced data mining and analytics (phase 2)v  - Analysis of any visible impact of the identified control weaknesses that would show up in the consumption indices or energy balances across the network
     - Review of the data models behind the billing, collection, customer operations, metering and technical service databases
     - Discussions on different customer segments and normal consumption trends
     - Drafting of recommendations and action plan for control improvements
  • In light of the discussions of the technical and process and controls streams, formulation of hypotheses for detail tests of the consumption indices, namely
  • Matching anomalies to meter or meter reader changes;
  • Matching anomalies to meter repair/replacement or technical service records; and
  • Matching anomalies to tariff or customer scheme swaps.