CEER Publishes its 2nd Report on Power Losses

21 February 2020

Today, CEER publishes its 2nd Report on Power Losses. This report analyses the way power losses are defined, calculated, procured and treated by the regulatory framework of the responding countries. Moreover, it statistically investigates the relationship between losses and certain other variables. Most importantly, the report provides comparisons between countries’ distribution, transmission and total losses as a percentage of energy injected in their distribution or transmission grid (or a total energy volume injected into a country’s grid in case of total losses).

The report is based on submitted input from 35 National Regulatory Authorities (NRAs), eight of which are ECRB Contracting Parties. Analysis of the responses revealed for instance, that there are different definitions of power losses across Europe and that very few countries include only technical losses in the values submitted for this report (versus including also non-technical losses).

Furthermore, the report sets out several recommendations:

1    Harmonise definitions of power losses in order to simplify comparison and enable proper benchmarking among countries.
2    Incentivise parties responsible for procurement of energy to cover losses to make this process as economical and efficient as possible.
3    Ensure that the incentives in (2.) are set efficiently with an appropriate target and timeframe so as to avoid unintended consequences on system operators.
4    Move toward greater required transparency on technical and non-technical components of losses so as to facilitate proper regulatory treatment of those losses.
5    Where appropriate, implement newer or more efficient transformers and/or operate higher voltages on distribution grids in order to reduce technical losses.
6    Incorporate the reduction of non-technical losses in calculating the benefits of smart meter roll-out, such that smart metering is further encouraged.
7    Increase monitoring of non-technical losses with a view to gauging the effectiveness of potential solutions, such as increased penetration of smart meters.

Please read the full report here.



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