In power distribution, losses are categorized into technical and non-technical losses. Technical losses are inherent to the system and occur due to energy dissipation in conductors, transformers, and other equipment, typically as heat ( ). Non-technical losses, on the other hand, occur when energy is used in a useful form but is not accounted for or paid for ( ). These losses are not caused by the physical network but by external factors such as human or administrative actions.
Non-technical losses reduce the revenue of distribution network operators (DNOs) and can affect the overall efficiency and reliability of the power system ( ). High levels of non-technical losses may also lead to increased tariffs for paying customers and can complicate network planning and maintenance.
Utilities employ several strategies to reduce non-technical losses:
Non-distribution or non-technical losses represent a significant challenge in power distribution, as they involve energy that is consumed but not billed. Unlike technical losses, which are unavoidable, non-technical losses can be minimized through proper metering, monitoring, and enforcement measures, improving both revenue and system efficiency ( ).
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