Analysis and recommendations for reducing commercial losses
Challenge
The distribution company within the energy group was facing high commercial losses resulting from illegal electricity consumption. The organization required a comprehensive analysis and recommendations for both short- and long-term actions to ensure a continuous reduction of trading losses. A key challenge was also the implementation of preventive measures to avoid such losses in the future.
Solution
We conducted a comprehensive analysis of the commercial loss issue. We defined the methodology for calculating losses, estimated their scale, analyzed the current (as-is) loss reduction activities, and designed a target operating process with boundary conditions and performance indicators.
- Loss estimation: definition of methodology and scale of commercial losses
- As-in analysis: review of existing loss reduction activities
- Target process: definition including boundary conditions and efficiency KPIs
- Business case justification for the target operating model
As part of the project, we carried out a detailed analysis of IT tools available on the market to support improved effectiveness in loss reduction. We defined preventive mechanisms and actions to mitigate illegal electricity consumption. The developed business case provided a solid foundation for the Management Board’s investment decisions.
Results
The distribution company received a comprehensive operating model for reducing commercial losses, along with a business case justifying investments in IT tools.
01
The organization gained clearly defined preventive mechanisms and performance indicators for loss reduction activities.
02
The implementation of the recommended operating model enabled the company to systematically reduce commercial losses.
The defined preventive measures ensured a long-term decrease in the scale of illegal electricity consumption.