Review of Total losses in Utility

1. Reducing Technical and Non-Technical
Losses in the Power Sector(Review)
Background paper for the world bank group energy
sector strategy
Presented by
Mbah, Uchenna Gregory

2. INTRODUCTION
Total losses are simply amount of electricity injected into the
transmission and distribution grid that are not paid for by
users. The two components of losses are Technical and non-technical
losses.
TECHNICAL AND NON-TECHNICAL LOSSES
• Technical losses are due to system design and nature
• Non-technical losses are due to theft and management
operation of utility

3. EFFECTS OF NON-TECHNICAL LOSSES
• Increase in tariffs paid by customers
• Worsen progressively quality of service
• Reduce access to electricity supply
• Reduce the income source of the power sector
• Jeopardizes the financial sustainability of power sector.
The effect was the situation in Latin America, Asia, former Soviet Union and
Sub-Sahara Africa were total losses are above 50%.
HOW IT WAS HANDLED
The situation was address through:
• Legislation
• Managerial strategy
• Technical action and
• Training

4. SUCCESS STORIES
LEGISLATIVE ACTION
• They acknowledged that there is energy theft
• They started reform policy in power sector that brought about check and balance
• They enacted a new law to address electricity theft
• They build new law court and police station for electricity theft cases
MANAGERIAL STRATEGY
• Business process reengineering - supported by management information system(MIS)
• Process reengineering - in addressing customer complains
• Communication -media adverts, posters, videos, public outreach program.
• In the regulation they lobbied political authorities and regulators to achieve a tariff structure that would allow financial sustainability
• They insured proper metering management
TECHNICAL ACTION
• Construction of distribution network that is tampering proof
• Capital investment to regularize supply, by renovating distribution network and replacement of obsolete equipment
• Replacement of damaged or tampered meters
• Field assessment of physical condition of supply
• Proactive action on faults in the network
TRAINING
• They insisted on ethical behavior of contracted workers.
• They provided working tools and training
• Contracting work to competent contractor

5. LET ME END HERE
The secret of the success stories lies in the right institutional
and regulatory framework with political leadership. Électricité
de France (EDF) failed to reduce losses in the first tariff period
as it kept the same management as when the company was a
Sate Own Enterprise(SOE).
Reduction of losses is an attitude. It begins with integrity,
innovation, right value and passion.

6. THANK YOU