3rd CEER Report on Power Losses

Introduction

This CEER Report examines power losses in European electricity grids, building on previous reports from 2017 and 2020. It analyses definitions, calculations, procurement, and regulatory treatment of power losses across 40 participating countries, covering both CEER Member and Energy Community Regulatory Board (ECRB) Contracting Parties’ countries.

Context and Purpose

Power losses have been assessed at the European level for over a decade. Previous studies by CEER and the European Commission explored methodologies and regulatory approaches. This third CEER Report extends prior analyses, using improved calculation methods and expanded data collection from National Regulatory Authorities (NRAs).

Key Findings

Definitions of power losses vary across countries. Most respondents define losses as the difference between injected and withdrawn energy, but distinctions between technical and non-technical losses are inconsistent. Transmission losses are generally lower than distribution losses due to higher voltages. Losses in distribution ranged from 1.95% to 22.63% in 2022, while transmission losses varied between 0.99% and 3.96%.

System operators usually procure energy to cover losses, with some exceptions where suppliers or balance responsible parties fulfil this role. While many countries have incentives for loss reduction, implementation varies. Smart meters (SM) can help reduce non-technical losses, but country-specific strategies remain necessary.

Recommendations

Harmonising definitions and establishing clear technical and non-technical loss distinctions would enhance benchmarking. System operators should be incentivised to minimise losses rather than passing costs to consumers. Additional measures, such as mandatory high-efficiency transformers and well-designed tariffs, could promote efficiency and renewable energy use. Increased SM deployment could improve accuracy and reduce losses, particularly from meter errors or illegal consumption. Country-specific approaches remain essential for effective regulation.