RevenueProtection Article PDF
RevenueProtection Article PDF
Utilities around the world lose billions of dollars from energy from registering, slowing down the meter with
technical and non-technical losses. Whether it is objects like magnets, inverting the meter in the socket
electricity theft, such as illegal hookups and altered and diverting electricity away from the meter by tapping
meters, or technical losses, such as equipment failure directly into the distribution line.
or line losses, an estimated $200 billion in utility revenue
Energy theft and diversion has a direct effect on the
is lost each year. Technical losses aren’t minimal, but
end-users and consumers, as utility losses result in
non-technical losses such as electricity theft or diversion
higher rates for all. Additionally, energy theft reduces
can be significant. In some cases, non-technical losses
grid stability and reliability, poses potential danger
have become the key incentive for the deployment of
to those in the immediate area and increases
advanced metering infrastructure (AMI) to help curb
the risk of fire or electrocution due to improperly
electricity theft.
installed bypasses.
In the Latin American country Ecuador,
electricity theft adds up to over $200 How AMI reduces losses
million per year. India, for example,
reports $16 billion in losses. In North The installation of AMI has provided utilities
America, Canada loses hundreds of with new tools to more efficiently identify and
millions of dollars to energy theft reduce instances of energy theft. Before
each year, and in the U.S., up to widespread advanced metering installations,
$6 billion is lost. As a result, utility theft detection often relied on utility workers
revenue protection strategies are spotting suspicious activity. Mechanical
becoming a top priority. meters are much easier to manipulate,
and with a single monthly read, meter data
Pinpointing energy theft can be was not as useful in tracking tell-tale trends.
a challenge, as those engaged in Advanced meters have the ability to detect
the activity often use sophisticated and alert utilities to instances of tampering and
methods. The most common forms of other cases of non-performing meters. It can notify the
energy theft include bypassing the meter to prevent utility immediately if there is unusual activity. Advanced
Leveraging the AMI investment
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