The electric power system as driven by economic market forces experiences intensive utilization. To keep electric power systems continue to operate in a reliable and secured manner, resources aside from power generation are needed. Demand-side management has been taking its place in supporting power system operations and planning in the deregulated era. Significant reliability and financial benefits are derived in utilizing various forms of demand-side control.

Demand-side management or control types can be categorized in the order of contribution to power system security and electricity market efficiency.

• Time of Use Pricing (TOU) – this approach shifts power consumption from peak periods where the probability of high market prices and transmission congestion are obviously high and expected.

• Real Time Pricing (RTP) – this demand-side control strategy allows the load to reallocate energy utilization to lower market price hours and when power transmission usage is lower.

• Demand-side Bidding – this category assist the system operator for maintaining generation-load balance and in managing of zonal congestion. With this, it tends to lower the operating cost of the consumer and demand-side assists in alleviating generation resources shortage.

• Demand-side as Ancillary Services – demand-side is utilized as system reserves through emergencies especially when no other possible option provides solution to mitigate existing system-wide operating concerns. In this case, demand-side can be called to support the system operation as Responsive Reserve, Non-spinning Reserve, Regulating Reserve, or as a Replacement Reserve. Most often, the demand is reduced during periods of critical generation reserve margins and when electricity market prices are high due to generation shortage.

• Direct Load Control – this strategy employ the usage of automated control to reduce or curtail demand consumption during the occurrence of price spikes or during summer periods.

• Interruptible Load Program (ILP) – demand is reduced or cut-off from the grid to maintain secured system operation during emergencies where system continuous service can be put at risk. Some system operators utilize interruptible load for economic benefits and eliminating system operating constraints.

Non-technical losses in distribution systems comprised about 2-3%, my estimate, of the total system losses.  Total distribution system losses equals technical losses plus non-technical losses.

In my experience and some readings, I believe that non-technical losses can be minimized or mitigated by utilizing non-technical strategies.

1.    Modeling and benchmarking technical losses thru computer simulations – if a DU can measure the technical losses incurred in operating its distribution system with the variation of supply and demand using a computer program, then the DU is in a position to quantify and identify probable nodes of sources of non-technical losses in the system comparing power/energy output from electricity meters. This approach may take some technical challenges, especially with the database development, but if accomplished the DU will have in its hands a tool that can predict energy efficiency of its distribution system franchise.
2.    Installation of totalizing meters – the measurement of energy output from a certain distribution feeder and laterals thru totalizing meters can be an effective way to guard pilferage along the feeder or lateral. Some DUs even install totalizing meters after the distribution transformer feeding a secondary feeder.  The accuracy of these totalizing meters must be accounted when investigating or assessing energy input and output among electricity consumers.
3.    Statistical analysis of electricity meter readings – ample data from electricity meters can be analyzed statistically over time to estimate significant deviation from usual meter readings. This will help the DU to keep track the energy usage of its consumers and will have a benchmark in case significant meter reading deviation especially at the totalizing meters is observed. Statistical monitoring of energy consumption per sector, per class and geographical set-up must be employed and statistical evaluation of meter readings will be in vain if electricity meters are not up to the standard accuracy. Energy consumption bands must result from the statistical evaluation to confirm anomalous meter readings. Upgrading of electricity meters to meet standard accuracy must be conducted to support reduction of non-technical losses thru statistical analysis.
4.    Technical training of DU personnel must be given plus enhancing employees’ loyalty and political will to eliminate pilferage in the distribution system must be considered. DU personnel who play an important role in mitigating non-technical losses must have deep loyalty to the company and must have ample technical knowledge in combating electricity pilferage.