Introduction
Distribution network losses are the difference between the electrical energy that enters the distribution network and the electrical energy that reaches the customer. Consequently, a proportion of the energy generated does not reach the end user, meaning more power must be produced to meet demand. Reducing losses on our network where reasonably practicable will result in savings for our customers and reduce National Grid Electricity Distribution's carbon footprint.
Our vision for losses during the current price control period, RIIO-ED2, is dominated by the journey to net zero by 2050 and the mechanisms that are needed to facilitate it. The benefits of energy efficiency are sizeable, but the pace of decarbonisation and the cost of immediate traditional upgrades and reinforcement mean that we must use flexibility and alternative means to deliver net zero.
This higher utilisation of the network will lead to an increase in losses. Our focus must therefore be how we can manage losses to be as low as practicably possible in a highly utilised network. We have conducted four further formal stakeholder events to gather insight into losses. Engagement has included input from more general stakeholders as well as stakeholders with greater technical awareness and a specific interest in losses. Based on feedback, we believe that the frequency of both stakeholder engagement event s and the update of the Losses Strategy that was first published in 2014, can be limited to whenever there is a significant update to discuss and report.