Determining the causes of electricity losses and the role of management in curbing them: A case study of City of Tshwane Metropolitan Municipality, South Africa
DOI:
https://doi.org/10.17159/2413-3051/2021/v32i4a8704Abstract
The problem of energy losses, both nationally and internationally, is a leading cause for the financial collapse of most utilities. A quantitative research approach was adopted for this study where a questionnaire was used to collect information from the participants. A total of 113 City of Tshwane (CoT) employees within the electricity division participated in the study. Descriptive statistics and inferential statistical methods were used to analyse the outcome of the survey. The study found that technical and non-technical losses are the major cause of revenue loss. Non-technical losses are caused either by inefficiencies in managing losses or by end-users being unwilling to pay for electricity. The study found that power theft through meter tampering, incorrect billing by employees, and cable theft were also major causes of energy losses. Illegal connections were found to be the major cause of energy losses, along with power theft and lack of resources. Deficiencies in infrastructure maintenance were found to be the main cause of technical losses. The study found that management of CoT is committed to managing energy losses, being aware of their impact on the financial well-being of the municipality. There is an established policy of managing energy losses and there is a plan to replace ageing infrastructure. Employees are continuously trained in accurate billing and metering as part of efforts to curb energy losses. The municipality is also engaged in efforts to put educational programmes in place to inform communities about electricity theft.
Downloads
References
Bakana, S. 2015. Investigating and mitigating of electrical power losses within City Power distribution. Available at: https://www.ee.co.za/wp-content/uploads/2015/11/AMEU-Convention-2015-p12-20cont23.pdf. [Accessed on 21 January 2021].
Boriratrit, S., Tepsiri, W., Krobnopparat, A. and Khunsaeng N. 2018. Forecasting and evaluation of electricity losses in Thailand via flower pollination extreme learning machine model Available at: https://www.researchgate.net/publication/328460568_Forecasting_and_Evaluation_Electricity_Loss_in_Thailand_via_Flower_Pollination_Extreme_Learning_Machine_Model. [Accessed on 21 January 2021]. DOI: https://doi.org/10.1109/SEGE.2018.8499301
Bua, F., Marra, A. and Baggini, A. 2016. Power transformer energy performance: Landscape of market surveillance testing avenues: Worldwide and EU Technical standard and legislative framework. In AEIT International Annual Conference (AEIT). Available at: https://intas-testing.eu/storage/app/media/AEIT2016-Baggini-Bua-FinalePAper.pdf, [Accessed 24 July 2019]. DOI: https://doi.org/10.23919/AEIT.2016.7892767
City of Tshwane. 2018. After almost two years the capital is in a good state. Available at: http://www.tshwane .gov.za/sites/about_tshwane /CityManagement/State%20of%20The%20City%20Addresses/Mayor%20Msimanga%20SoCA2018%20(EdIS%2BML%2BVG).pdf. [Accessed 6 June 2018].
Cotton, M. and Devine-Wright, P. 2012. Making electricity networks ‘visible’: Industry actor representations of ‘pub-lics’ and public engagement in infrastructure planning. Public Understanding of Science, 21(1):17-35. DOI: https://doi.org/10.1177/0963662510362658
Council of European Energy Regulators. (2017). CEER report on power losses. Available at: https://www.ceer.eu/documents/104400/-/-/09ecee88-e877-3305-6767-e75404637087. [Accessed 6 Janu-ary 2019].
Das, A. and McFarlane, A. 2019. Nonlinear dynamics of electric power losses, electricity consumption, and GSP in Jamaica, Energy Economics, 84: 1-10. DOI: https://doi.org/10.1016/j.eneco.2019.104530
Deloitte. 2017. Prospectus: Long-term loss reduction plan. Available at: https://www.usaid.gov/sites/default/files/documents/1865/Prospectus_Long_Term_Loss_Reduction_Plan_2017_10_21_FINAL.PDF. [Accessed 7 January 2019].
Eberhard, A 2019. The municipal electricity industry – key dynamics with a focus on the metros. Discussion paper. Available at: https://csp.treasury.gov.za/Resource%20_Centre/Conferences/Documents/CSP%20Tools/Economic%20Development/Muni%20Elec%20Industry%20DP.pdf. [Accessed on 17 January 2021].
Energy Research Centre, Centre for Scientific and Industrial Research and International Food Policy and Research Institute. 2017. The developing energy landscape in South Africa: Technical Report. Energy Research Centre, University of Cape Town.
Eskom. 2015. Eskom financial. Available at: http://www.eskom.co.za/IR2015/Documents/EskomAFS2015.pdf. [Ac-cessed 22 February 2019].
Expósito, A.G., Conejo, A.J. and Canizares, C. 2016. Electric energy systems: analysis and operation. CRC press, New York.
Forum for Energy Regulators (2016). Best practices and strategies for distribution loss reduction - Final report. Available at: http://www.forumofregulators.gov.in/data/study/11.pdf. [Accessed on 23 November 2021].
Grasso, C017. The dark side of power: Corruption and bribery within the energy sector. Available at: https:// www.researchgate.net/publication/ 322097332_The _Dark_ Side_of_Power_ Corrup-tion_and_Bribery_within_the_Energy_Sector> [Accessed 30 January 2021].
Jiménez, R.A., Serebrisky, T. and Mercado Díaz, J.E. 2014. Power lost: Sizing electricity losses in transmission and distribution systems in Latin America and the Caribbean: Inter-American development Bank. Available from: https://publications.iadb.org/publications/english/document/Power-Lost-Sizing-Electricity-Losses-in-Transmission-and-Distribution-Systems-in-Latin-America-and-the-Caribbean.pdf. [Accessed on 23 November 2021]. DOI: https://doi.org/10.18235/0001046
Kambule, N., Yessoufou, K., Nwulu, N. and Mbohwa, C. 2018. Exploring the driving factors of prepaid electricity meter rejection in the largest township of South Africa. Energy Policy, Vol 124(c): 199-205. DOI: https://doi.org/10.1016/j.enpol.2018.09.041
Louw, Q.E. 2019. The impact of non-technical losses: A South African perspective compared to global trends. CA South African Revenue Protection Association conference paper. available from https://www.researchgate.net/publication/335337986_The_Impact_of_Non-Technical_losses_A_South_African_perspective_compared_to_global_trends. [ Accessed on 17 January 2021].
Fourie, L.L.P. 2010. Revenue protection as part of utility financial sustainability. Available at https://www.ee.co.za/wp-content/uploads/legacy/Energize%20_%202010/06_TT_03_Revenue.pdf. [Accessed 30 June 2018].
Luo, L., Cheng, X., Zong, X., WeI, W. and Wang, C. 2015. Research on transmission line loss and carrying current based on temperature power flow model. In 3rd International Conference on Mechanical Engineering and Intel-ligent Systems, available from: https://www.atlantis-press.com/article/25837253.pdf. [ Accessed on 23 November 2021 DOI: https://doi.org/10.2991/icmeis-15.2015.24
Meyer, M. 2016, Talent management system standard element, South African Board of Peoples Practices Available from http://www.saodn.net/wpcontent/uploads/2013/07/HRMSS-Version-6- January -2016.pdf.[ Accessed on 23 November 2021].
Navani, J.P., Sharma, N.K. and Sapra, S. (2012). Technical and non-technical losses in power system and its econom-ic consequence in Indian economy. International Journal of Electronics and Computer Science Engineering, 1(2): 757-761.
Ndungu, C., Nderu, J., Ngoo, L. and Hinga, P.(2017). A study of the root causes of high failure rate of distribution transformer: A case study. International Journal of Engineering and Science, 6(2): 14-18. DOI: https://doi.org/10.9790/1813-0602021418
Negadaev, V.A. 2018. Algorithms for building distribution networks of electricity supply, reducing losses of electrici-ty . Available from https://www.researchgate.net/publication/326576188_Algorithms_for_building_distribution_networks_of_electricity_supply_reducing_losses_of_electricity. [Accessed on 21 January 2021]. DOI: https://doi.org/10.4108/eai.10-7-2018.155046
Newbery, D. and Eberhard, A. 2008. South African Network Infrastructure Review: Electricity, available from: https://www.gsb.uct.ac.za/files/saelectricitypaper08.pdf. [Accessed on 23 November 2021].
Jiguarmar, J. 2014. Total losses in power distribution and transmission lines (Part 2), available from: https://electrical-engineering-portal.com/total-losses-in-power-distribution-and-transmission-lines-2.[ Accessed on 23 November 2021].
Ramos, C.C.O., de Sousa, A.N., Papa, J.P. and Falcao, A.X. 2011. A new approach for nontechnical losses detection based on optimum-path forest: EEE Transactions on Power Systems, 26(1): 181-189. DOI: https://doi.org/10.1109/TPWRS.2010.2051823
Refou, O., Alsafasfeh, Q. and Alsoud, M. 2015. Evaluation of electric energy losses in southern governorates of Jor-dan distribution electric system. International Journal of Energy Engineering 5(2): 25-33.
Rengarajan, S. and Loganathan, S. (2012). Power theft prevention and power quality. International Journal of Elec-trical and Electronics Engineering, Vol 1(3), 106-110
Saunders, M.N.K., Lewis, P. and Thornhill, A. 2016. Research methods for business students. (5th ed.). Harlow, United Kingdom: FT Prentice Hall.
South African Revenue Protection Association (SARPRA). 2018. Revenue protection initiatives to reduce losses and improve municipal cash flow. Available from https://www.salga.org.za/SALGA%20Municipal%20Managers%20Forum%20Web/Documents/Day%202/SARPA%20SALGA%20Municipal%20Managers%20Forum%20Mbombela.pdf
Van der Laan, D.C., Lu, X.F. and Goodrich, L.F. 2011. Compact GdBa2Cu3O7–δ coated conductor cables for electric power transmission and magnet applications: Superconductor Science and Technology 24(4). DOI: https://doi.org/10.1088/0953-2048/24/4/042001
Yukl, Y. 2013. Leadership in Organizations. Pearson Education, Albany
Council of European Energy Regulators. (2017). CEER Report on Power Losses. [Online] Available at: https://www.ceer.eu/documents/104400/-/-/09ecee88-e877-3305-6767-e75404637087. [Accessed 6 January 2019].
Downloads
Published
Issue
Section
License
Copyright (c) 2021 Bongani Khonjelwayo, Thilivhali Nthakheni
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.
.png){kind=spacer}