By Satish Saini, HEXstream utilities industry specialist  

In the first installment of our T&D Energy Losses 101 series, we explored the types of losses utilities face. Here we example the impact of those energy losses, which directly undermine the operational efficiency and financial performance of energy, gas and water providers of all sizes. Take a look… 

Financial impact: High T&D losses translate directly into financial losses for utilities. The energy/gas/water received or supplied but not sold or billed due to these losses reduces revenue and profitability of the utility.

Operational efficiency: T&D losses reduce the overall efficiency of the power system, leading to higher operational costs as more energy is needed to be generated and supplied to meet demand, all while infrastructure is overloaded, which is not even visible due to higher losses (especially for non-technical losses).

Environmental impact: Increased energy generation to compensate for T&D system losses creates more carbon emissions, especially in countries that rely on fossil fuels for power generation.

Grid reliability: High losses put a huge strain on the grid, potentially leading to voltage drops, increased outage rates, and reduced reliability of the power supply.

Infrastructure upgrades: Reduced revenue hinders utilities’ progress in upgrading their infrastructure–fewer funds results in fewer new assets.

Customer service quality and satisfaction issues: In some cases, utilities may pass onto their customers the costs from their T&D losses in the form of higher electricity rates. This can lead to dissatisfied customers. Also it further reduces the overall quality of service.

These downsides from energy losses are worrisome, for sure. But solace is found in the knowledge that energy losses are easily detected and can be quickly mitigated with smart, strategic approaches, such as HEXstream’s Utility360.

In our next installment of this series we’ll spotlight those smart approaches your utility can use to reap huge financial gains by mitigating your energy losses. 

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