It is estimated that non-technical losses account for about 3% of the electricity tariff in Brazil, resulting in a loss of approximately BRL 10.3 billion for the Brazilian power sector.
Non-Technical Losses: Challenges and Impacts
In the electricity sector, both transmission lines and distribution grids can experience losses of electrical energy. Technical losses are directly related to factors such as electrical resistance, energy transformations, and heat dissipation during the transportation and distribution of electricity.
On the other hand, non-technical losses are caused by illegal practices, fraud, and errors in the metering and billing system.
What Are Non-Technical Losses?
Technical losses refer to electrical energy lost in the distribution process but are not related to technical factors, such as failures or problems in the electrical infrastructure.
The main causes of non-technical losses are:
Illegal connections: Popularly known in Brazil as "gato" (cat), this is the most common form of non-technical loss. It occurs when a consumer connects irregularly to the electrical grid without paying for the consumed energy.
Meter tampering: Involves the alteration of the energy meter to record consumption lower than the actual consumption. This practice can be done in various ways, such as using magnets, wires, or other devices.
Measurement and billing errors: Can occur due to faults in measurement equipment, reading or typing errors, or failures in the billing systems of companies.
Inconsistency in measurement: This situation occurs when the energy meter records consumption lower than the actual consumption of the client, for various reasons such as defects in the meter, installation failures, or programming errors.
Non-payment: Refers to the failure to pay energy bills by consumers.
Causes and Consequences
Energy theft, carried out through illegal connections and direct grids diversions, as well as energy fraud, emerge as the main causes of non-technical losses. These illegal practices, known as "gatos" in Brazil, not only compromise the integrity of the electrical system but also have a direct impact on the financial sustainability of energy distributors.
By promoting illegal connections and grids diversions, risks are created for the security of the electrical system, significantly increasing the possibility of accidents and interruptions in the supply of energy. Therefore, in the Brazilian context, non-technical losses have a significant impact on the electricity sector, resulting in financial losses for energy distribution companies, which in turn pass on these losses to consumers by increasing electricity tariffs.
Who Pays the Bill for Energy Theft?
Unfortunately, regular consumers end up bearing the costs resulting from energy fraud and theft. These values are subsequently passed on to electricity tariffs, directly impacting consumers pockets.
However, it is important to note that the regulatory values for these losses, established based on efficiency criteria, are lower than the values practiced by distribution companies.
The Role of ANEEL in Regulating Non-Technical Losses
The National Electric Energy Agency (ANEEL) adopts a regulation model based on incentives, aimed at stimulating the efficiency and quality of services provided by concessionaires. In this sense, when identifying inefficiency in the management of a concessionaire, it limits the transfer to consumers energy bills.
This approach aims to encourage energy distributors to adopt measures to combat non-technical losses. Among them are investments in fraud detection and monitoring technologies, educational campaigns, and improvements in oversight. By controlling commercial losses, energy distributors can reduce operational costs and decrease the financial impact on consumers.
However, it is crucial that actions to combat non-technical losses are effective and continuous, to ensure fairness in the electrical system and prevent consumers from being unfairly penalized. In addition, awareness and active participation of consumers play an important role in this process, through reporting fraud cases and contributing to the promotion of a fairer and more sustainable electricity sector.
In summary, although regular consumers need to bear part of the costs of non-technical losses, ANEEL's incentive regulation limits this impact and stimulates the efficiency of energy distributors. To ensure fairness and equity in the Brazilian electrical system, it is essential to implement effective actions to combat fraud and theft, together with consumer awareness and participation.
Challenges and Solutions
Reducing non-technical losses is a crucial goal for the Brazilian electricity sector to achieve greater efficiency and sustainability. To tackle this challenge, a joint effort involving energy distributors, the government, and consumers is necessary.
In this sense, advanced metering and monitoring technologies play a fundamental role in identifying and preventing these losses. The use of smart meters and fraud detection systems enables the identification of illegal connections and manipulations in energy meters.
Furthermore, rigorous oversight and the application of appropriate penalties are essential to discourage illegal and fraudulent practices. Through awareness and education campaigns, it is possible to engage society in the fight against commercial losses.
The National Scenario and the Future of Energy Management
HVEX, in partnership with Grupo Energisa and as part of ANEEL’s R&D program, developed Omni Trafo, an intelligent monitoring system designed to enhance the efficiency, safety, and reliability of power distribution networks.
Designed to integrate transformers into Smart Grids, Omni Trafo provides real-time information on key system parameters such as voltage, current, power, energy, overload, and temperature.
Thanks to its advanced data processing capability, it offers a detailed view of the monitored assets and networks, enabling the identification of early failures, phase imbalances, hotspots, and power quality issues. In addition, the technology allows for the detection of technical losses and inefficient consumption, promoting greater energy efficiency.
By implementing Omni Trafo, processes can be optimized, costs reduced, and the service life of transformers extended, thanks to its advanced connectivity that makes all asset data available through the Shield-X web platform, ensuring modern, reliable, and intelligent operation.
If your company is seeking energy efficiency, loss reduction, and smart energy management, Omni Trafo is the ideal solution. Contact us and discover how this technology can transform your energy strategy.
Discover how Omni Trafo can assist in your company's energy management!