How to identify the best actions to reduce non-technical losses


Conference: Metering, Billing/CRM Latin America 2006
Location: Rio de Janeiro
Presenter: Luis Armando Crestana & Denis Maia
Abstract: Presented by Marcos Aurelio Madureira & Denis Maia at Metering, Billing/CRM Latin America 2006.

“Utilities have very distinct actions to reduce non-technical losses, from field inspections to network armoring. Each action has different costs per consumer, sometimes tenfold, and for sure diverse results. To become worst, the same action has singular results in each group of consumer.

Because of this, one of most challenging task for executives and managers in charge of Revenue Protection is budget definition. The questions are: How much money the utility needs to reduce x% of losses ? What are the actions composition in the utility’s revenue protection budget ?

The answers are based in a preliminary question: how to identify the best action to reduce losses for each customer ? If the utility has this answer it will be possible answer the other questions.
The authors will present the case study of Sistema Cataguazes-Leopoldina where was implemented a software solution to identify the economic return for each losses reduction action. The economic return is the amount of energy recovered and aggregated by the action divided by the action cost.

The software can show either different economic returns in the same group of consumers where were applied the same action or diverse economic returns for the action applied in distinct groups of consumers.

The authors believe intelligent systems that introduce financial perspective per action per consumer group will be the next generation and one of most powerful decision-making tools to support utilities to reduce their losses.