Types of Energy Losses in Distribution Networks

Illustrative image (Source: Internet)

Circular 39/2015/TT-BCT clearly states that the energy loss in the distribution grid includes:

1. Technical energy loss is the energy loss caused by the physical nature of the electrical conductors and electrical equipment on the distribution grid.

2. Non-technical energy loss is the energy loss influenced by factors in the electricity business management process that are not caused by the physical nature of the electrical conductors and electrical equipment on the distribution grid.

Additionally, the Circular also stipulates the procedure for approving the annual electricity supply reliability index and energy loss of the distribution grid as follows:

- By November 15 every year, Vietnam Electricity is responsible for developing a plan for the reliability of electricity supply and energy loss for the following year of the Electricity Distribution Units to submit to the Electricity Regulatory Authority for review and approval.

- By December 15 every year, the Electricity Regulatory Authority shall approve the reliability index of electricity supply and energy loss of each Electricity Distribution Unit, providing the basis for calculating distribution costs for the Electricity Distribution Unit.

The Circular clearly states that an Electricity Distribution Unit is an electricity entity licensed to operate in the field of electricity distribution and sales, including:

- Electricity Corporations;

- Provincial Electricity Companies, municipalities directly under Electricity Corporations (hereinafter referred to as Provincial Electricity Companies).

Details are available at Circular 39/2015/TT-BCT, effective from January 18, 2016.

Le Hai

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