What is Loss and Theft?

Loss and theft is the difference between the electrical energy delivered to the distribution grid and the energy billed to subscribers. It has two components: technical losses (physically unavoidable losses from cables, transformers and transmission) and theft (unauthorized electricity consumption that bypasses the meter).

For organized industrial zones and multi-subscription facilities, loss and theft is a significant cost item. AMR and central monitoring systems make it possible to detect where loss and theft occurs by comparing the consumption of each measurement point against the total energy entering the grid. Sudden, unexplained consumption gaps can be a sign of theft.

The way to reduce loss and theft is to monitor all measurement points continuously and regularly check the energy balance (energy in − energy billed). A system that raises an alarm when an anomaly is detected catches both technical losses and unauthorized use early.