Causes of Non-Technical Losses and Reduction Measures in Power Distribution Utilities: A Review

Non-technical also-called commercial losses present a significant challenge for electric power distribution utilities, especially in developing countries. These losses are due to fraud and energy theft, such as illegal meter tampering and unauthorized connections, as well as billing errors and defective meters. Addressing non-technical losses requires targeted actions, not just general network upgrades like those used for technical losses. Reducing non-technical losses is crucial for the financial sustainability of utilities. High loss levels result in inefficient systems, poor power quality, and unreliable supply, leading to consumer dissatisfaction and adversely affecting the financial health of power distribution utilities. This paper provides a detailed resource for determining the causes and measures to reduce non-technical losses, supported by practical case studies, with a focus on developing countries.