Despite all the efforts that Utilities are putting today to reduce fraud and theft, the total value persists to increase, regardless of being electricity, water or gas companies and the continent where are located.
In the last decade, revenue erosion for electricity distribution utilities due to fraud or theft increased from a total worldwide amount of US$89.3 billion to US$96 Billion annually. This impacts the society in general from three different perspectives:
- From a financial standpoint, the society is funding this cost through state subsidies and taxes or through increased tariffs that embed, if not all, at least a major part of these losses;
- From a cultural perspective, in one hand non-technical losses may reflect a problem of poverty in low-income areas and can be seen as a social and educational issue. On the other hand, commercial and industrial as well as some high-income residential consumers are implementing sophisticated fraud techniques, making it evident that the benefits of this criminal practice are worth the risk of being caught.
- From an environmental view, non-paid energy and water are largely inefficient, causing more pollution and waste of natural resources.
Losses are a constant in Utilities’ business. Some level of losses is inevitable as the cost to eliminate them is greater than the losses itself and most probably not doable. On the other hand, this should not be a justification for Utilities doing little or nothing, considering the very adverse consequences of ever-increasing losses to the Utility and the society it serves. The sweet spot to address is the ability to reduce losses to a sufficiently low level where the cost-benefit analysis of the solution targets a short payback time. Seems simple but can be complex, very complex.
Artificial Intelligence and software analytics techniques are nowadays playing a foundational role to support these initiatives.
In this webinar, you will hear about the strategies to reduce revenue erosion across electricity, water or gas companies, and understand the value that Utilities are realizing today with analytics on top of once-a-month data generated by conventional meters. You will also learn how analytics ideally complement AMI and smart meters by providing a comprehensive view of how big data acquired by these devices can be used to uncover sophisticated fraud schemes. Adding to this, Choice will elaborate in more detail on the economic impact, on what factors contribute to non-technical losses, on the role of the regulators and lastly on the solutions.
Curious? Register and learn how Utilities are applying state-of-the-art technologies to face this problem successfully.