The importance of reducing electrical losses on distribution networks is growing. As electricity usage increases, the control of losses to an economic level will become a key feature of network operation. It has only been in the RIIO-ED1 period that Distribution Network Operator’s (DNO's) have started to publically document a Losses Strategy.
The energy lost in distribution creates a financial cost which is fronted by the customer. DNO’s are obliged, as part of their license, to reduce losses on their networks as far as reasonably practicable. Reducing the energy lost will reduce carbon emissions, which impacts climate change.
Reducing losses effectively increases the network capacity. This is crucial with energy consumption likely to increase sharply in the near future, as a result of The Carbon Plan and the uptake of new technologies such as electric vehicles and heat pumps. By reducing losses wherever possible, it could reduce the need for costly network reinforcement projects.