BPL Global has partnered with Brazilian company Choice to co-market non-technical loss software solution worldwide. Electric utilities using the solution typically achieve three times the reduction in non-technical loss as compared to their traditional approach. Together with utilities, BPL Global is working to change consumer behavior, reducing energy consumption and increasing utility revenue by eliminating the unnecessary waste from non-technical loss.
A big challenge facing some electric utilities, non-technical loss can reach as much as 30% or more of revenue. The dynamic and varied causes of non-technical loss combined with the large number of locations and underlying consumer behaviors involved are significant obstacles to an effective solution. Primary causes include commercial loss, nonpayment loss and administrative loss. Commercial loss is commonly linked to electricity theft committed against the electric energy provider from illegal taps on power lines or tampering with electric meters. Nonpayment loss, on the other hand, is usually caused by an inability to pay the full price for electricity consumed. Administrative loss is commonly related to business process failures within a utility. These losses represent a significant level of unnecessary energy waste resulting in an added burden on electric rates for consumers, lost revenue for utilities and increased carbon emissions into the environment.
"Transformative, best-of-breed technology is required to address the unique challenge of changing the consumer behavior at the root of non-technical loss," said Keith Schaefer, CEO of BPL Global. "For the first time, through our partnerships with Choice and electric utilities, a systemic and sustainable reduction in non-technical loss can be achieved."
The non-technical loss solution combines proprietary software, consulting services and business process outsourcing into an "Intelligence Center" designed to optimize revenue recovery and energy efficiency. Utilities using the program have generated a return of up to 400% on their investment within one year. Leveraging software and improved business processes utilities effectively address the root cause of non-technical loss, changing consumer behaviors. Typically one-third of the loss-recovery is captured by the utility as an increase in revenue while two-thirds results in energy savings. By reducing non-payment loss, the cost of electricity is more fairly paid by all consumers. By reducing commercial and administrative loss, energy savings are achieved.
