Non-technical losses (NTLs) are one of the main problems that electricity distribution utilities face in developing regions such as Latin America, the Caribbean, sub-Saharan Africa, and South Asia. In Brazil, NTL reached a level of 14.37 % in relation to the low voltage consumers, equivalent to 33.45 TWh destined for energy theft/misappropriation. This level is similar to all energy sold to low-voltage consumers in the states of Santa Catarina, Paraná, Mato Grosso do Sul, and Espírito Santo, comprising a populace numbering just over 25 million individuals. Centralized measurement systems (CMS) have been used in Brazil to reduce non-technical losses, especially in low-income communities. Recently, these systems have encompassed solutions commonly used in smart meters, enabling new functionalities. These features can benefit consumers, distribution utilities, and the government. Important works in the literature measure the relationship between the benefits and costs of smart metering, such as BEIS (2019), EPRI 2012, Europenan Commission (2012), and Lamin (2013). These works make methodological proposals for calculating the benefit-costs of smart metering. This article proposes a cost-benefit analysis to evaluate the effectiveness of a centralized measurement system for reducing non-technical losses in low-income communities.
To build a model for evaluating the effectiveness of measurement systems based on a benefit-cost (B/C) analysis, the following steps are proposed: Phase I - Documentation and project overview; Phase II - Description of cost and benefit parameters; Phase III – Assessment of conflicting parameters; Phase IV – Estimation and monetization of benefits and costs; Phase V – Conducting benefit-cost analysis (B/C); e Phase VI – Carrying out sensitivity tests.
To demonstrate the applicability of the proposed B/C analysis model, a project was defined to reduce non-technical losses in the region of the Chapéu Mangueira and Babilônia communities in the Light electricity distribution concession area. It was proposed to use a centralized measurement system—a Landis Gyr solution—with a remote cut-off/reconnection feature and intelligent measurement (every 4 hours). A survey carried out by RevoluSolar in 2022 with 310 respondents from the Babilônia and Chapéu Mangueira communities was used to estimate benefit and cost indicators. The results of this research were extrapolated to the population of these communities, consisting of 1,579 households and 5,027 residents. This research was able to determine consumer consumption under the following conditions: theft, partial theft, and regular. In the most general case, 15 benefits and 11 costs were considered. Some of the costs were built into the average price of CMS meters.
Through a cost-benefit analysis, it was possible to evaluate the effectiveness of a centralized measurement system for reducing non-technical losses in a low-income community in Rio de Janeiro. Furthermore, the benefit-cost analysis showed that CMS brings more benefits than costs in most simulated scenarios. However, this centralized measurement system must come with solutions used in smart meters, as proposed in this project. As future work new indicators of benefits and costs should be used. Therefore, some studies to determine better ways of measuring them should be carried out.
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