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The electrical transmission system is more complex and dynamic than other utility systems, such as water or natural gas. Electricity flows from power plants, through transformers and transmission lines, to substations, distribution lines, and then finally to the electricity consumer. The electric system is highly interconnected.

The term distribution line losses refers to the difference between the amount of energy delivered to the distribution system and the amount of energy customers is billed. Distribution line losses are comprised of two types: technical and non-technical. It is important to know the magnitude and causality factors for line losses because the cost of energy lost is recovered from customers.
India faces endemic electrical energy and peaking shortages. These shortages has negative effect on economic growth of India. Reasons.

Distribution line with no ground wire.

Dual 345 kV transmission line

There two types of transmission lines: overhead lines and Underground cables.

 Sufficient investment in capacity and efficient working of transmission and distribution systems in developing economies with high growth of electricity demand are important objectives Market oriented reform processes are required both for the creation of capacity and for electricity as a product. This invariably requires unbundling of transmission and distribution capacities from generation capacities. In this context alternative governance structures need to be explored. Concretely there has to be major emphasis on development of mechanisms of moving from State owned centralized planned and public sector owned electricity utility systems to public private partnership models for transmission and distribution. Transparency and different bidding procedures are essential during the transition.

The inherited model of energy development and consumption in India was that of a centrally planned system in largely publicly owned and operated electricity and energy system, with a substantial Central Government capacity and the rest in State Electricity Boards (SEBs). How did India energize its growth with this dismal performance in the electricity sector capacity growth? There were three factors at play which redeemed the failure. First generating units were run better, not only in the Central Public Sector, but also in the States. The plant load factor in the electricity sector improved and generation was growing faster than capacity. Second efficiency led economy level growth was accompanied by substantial gains in energy efficiency in the power consuming sectors. For the manufacturing sector this emerged partly as a matter of strategy since the second half of the Eighties of the last century and partly from the X efficiency factor. Third there was a substantial increase in capacity in the non-utilities captive power sector as the grid failed to supply power.

 First the need to experiment with alternative administrative and bidding procedures in the unbundling process of transmission and distribution from centralized electricity systems. Second there is a need to move away from cost plus pricing in transmission and distribution at the earliest. Third a transparent regulating system and the infrastructure of transmission and distribution needs to be set up at the earliest and the Indian experience are helpful in terms of such structures in a large. Fourth the Indian experience brings out the need to persist with reform ideas at the highest political levels. Fifth technological improvement packages, say as in open access programs need to be accelerated anyway and the Indian experience shows that while the important issues lie in the reform and unbundling package, the technical packages have a usefulness of their own .

 In India, average T & D (Transmission & Distribution) losses, have been officially indicated as 23 percent of the electricity generated. This exhibit presents a discussion on the types of line loss, the reason they exist, an estimate of the technical and non-technical line loss associated with Distribution System. The term distribution line losses refers to the difference between the amount of energy delivered to the distribution system and the amounts of energy customers are billed. Distribution line losses are comprised of two types: technical and nontechnical.

 Technical losses are naturally occurring losses (caused by actions internal to the power system) and consist mainly of power dissipation in electrical system components such as transmission lines, power transformers, measurement systems, etc. Technical losses are possible to compute and control, provided the power system in question consists of known quantities of loads. Technical losses in power system are caused by the physical properties of the components of the power system. Technical losses occur during transmission and distribution and involve substation, transformer, and line related losses. Technical losses are due to current flowing in the electrical network and generate the following types of losses: Copper losses Induction and radiation losses Dielectric losses Harmonics distortion Improper earthing at consumer end

Includes all unaccounted for energy other than technical losses. This can occur through theft, meter inaccuracies, billing errors etc. Non-technical losses (NTL), on the other hand, are caused by actions external to the power system, or are caused by loads and conditions that the technical losses computation failed to take into account. NTL are more difficult to measure because these losses are often unaccounted for by the system operators and thus have no recorded information. The most probable causes of Non Technical Losses (i)Tampering with meters to ensure the meter recorded a lower consumption reading (ii) Errors in technical losses computation (iii) Tapping (hooking) on LT lines (iv) Arranging false readings by bribing meter readers (v) Stealing by bypassing the meter or otherwise making illegal connections (vi) By just ignoring unpaid bills (vii) Faulty energy meters or un-metered supply (viii) Errors and delay in meter reading and billing (ix) Non-payment by customers.

Loss Allocation: When technical losses are not averaged over all customers on the system they are divided into parts and each part assigned (allocated) to a different customer or group of customers. The loss allocation can be either power or energy losses, but usually it is energy losses. It can be expressed in kW-h or as % of energy sold to that customer or group of customers in a year. The loss allocation is often used as a basis for a DLF (distribution load factor). Loss Factor: A factor used to convert the power loss at peak load to the average power loss. It depends on the details of the load profile, i.e. how the load changes with time. Distribution Loss Factor (DLF): A factor used to increase the measured energy from a customers meter to account for losses in the delivery of the energy. Electricity Theft: Electricity theft is defined as a conscience attempt by a person to reduce or eliminate the amount of money he or she will owe the utility for electric energy. This could range from tampering with the meter to create false consumption information used in billings to making unauthorized connections to the power grid.

Technical losses result from equipment inefficiency, the inherent characteristics of the materials used in the lines and equipment, and the sizes of lines and equipment. The three major contributors are the current squared losses through a resistance, transformer excitation losses, and line and insulation corona or leakage losses. In AC systems the copper losses are higher due to skin effect. Due to skin effect, the flux density at the centre of the conductor is great and current flow towards the surface of the conductor is greater. Therefore the skin effect increases the resistance and thus the power loss. The most predominant no-load losses are the core losses, made up of hysteresis and eddy current losses. Dielectric losses are losses that result from the heating effect on the dielectric material between conductors. The heat produced is dissipated in the surrounding medium. Induction and radiation losses are produced by the electromagnetic fields surrounding conductors. Induction losses occur when the electromagnetic field about a conductor links another line or metallic object and current is induced in the object.

An electric power system can never be 100% secure from theft. In many systems the amount of theft is small (12%) in terms of the electricity generated. But, the financial loss is high due to the large amount of electricity distributed. Nesbit (2000) noted that, In the US, the consensus seems to be that theft costs between 0.5% and 3.5% of annual gross revenues in the US. That seems like a small amountuntil you consider that US electricity revenues were in the $280 billion range in 1998.Therefor e, between $1 and $10 billion worth of electricity was stolen. Some power systems may forfeit more than 15% of power generated to various types of theft. A Transparency International (1999) report explains the situation in Bangladesh.

 A study undertaken in a primarily agricultural electricity distribution subdivision in south Rajasthan reveals that distribution losses are not only very high, but that they are mostly commercial in nature. Illegal hooking in both the domestic and agriculture categories is rampant and probably constitutes the largest proportion of unaccounted energy The three main categories of electricity consumption are agriculture, domestic, and industry. Amongst these agriculture is widely presumed to be a key contributor to high distribution losses arising from low tariff and extensive theft. While the fact that distribution losses are high is well known, the magnitude of losses being incurred (up to 80 per cent and more) has come as a revelation.

In many poor countries economic growth is hampered by inadequate and irregular supplies of electricity. Indian firms ranked electricity problems as the most important issue facing their businesses in the 2006 World Bank Enterprise Survey. The scarcity and unpredictable supply of electricity are in part results of widespread theft, as well as lack of adequate generating capacity. Given its high value, the relative ease with which it is diverted, and the difficulty of identifying individual offenders, theft of electrical power is easily accomplished as well as useful to enterprises and individuals. The most visible indication of energy theft occurs when users illegally tap into the public supply.

Billing irregularities can occur from several sources. Some power organizations may not be very effective in measuring the amount of electricity used and unintentionally can give a higher or lower figure than the accurate one. The unintentional irregularities may even out over time. However, it is also very easy in some systems to arrange for much lower bills to be given than for the power actually used.. The consumer pays the lower bill and the meter-reader earns unofficial salary. In another type of billing irregularity, office staff can move the decimal point to the left on the bill so that a person or company pays Rs. 47.48 instead of Rs. 474.80. Consumers may know that some power organization staff are on-the-take for providing these services. . Corrupt practices may become institutionalized to the extent that employees regard the illicit payments as part of the job. Some persons and organizations do not pay what they owe for electricity.

Electricity theft can be estimated, but not measured exactly. The most accurate estimate of theft is by conducting a thorough analysis of the power system. The APS wanted a research project that would go beyond the usual studies that target meter tampering. They wanted to know the extent of meter tampering and the financial loss in such a way as to be able to extend the research to the whole of the APS system with a 95% confidence.

Three methods for reducing power theft are identified in this thesis: technical/engineering, managerial, and system change.

Technical/engineering methods
Managerial methods System change
(9.18.1)

The evidence points to the increasing levels of power theft in many countries and the financial losses for some systems are so immense that the utility is in financial turmoil. Investment in improving the system and adding additional capacity cannot be undertaken, loans and payments cannot be met, and the consumer faces increased electricity charges. Even in efficient systems, theft losses can account for millions of dollars each year in lost revenue. Electricity theft in its various forms can be reduced and kept in check only by the strong and assertive action of power sector organizations. The strategy and the action should be based upon a thorough understanding of the specific nature of the theft problem.

Equations similar to (9.19.2) can be derived for three-phase lines and for lines with more phases In most of the practical situations, the inductance of the transmission line can be found from tables supplied by line developers. Analysis of (9.19.2) shows that:

1. The greater the spacing between the phases of a transmission line, the greater the inductance of the line. Since the phases of a high-voltage overhead transmission line must be spaced further apart to ensure proper insulation, a high-voltage line will have a higher inductance than a low-voltage line. Since the spacing between lines in buried cables is very small, series inductance of cables is much smaller than the inductance of overhead lines. 2. The greater the radius of the conductors in a transmission line, the lower the inductance of the line. In practical transmission lines, instead of using heavy and inflexible conductors of large radii, two and more conductors are bundled together to approximate a large diameter conductor. The more conductors included in the bundle, the better the approximation becomes. Bundles are often used in the high-voltage transmission lines.

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