Determining the causes of electricity losses and the role of management in curbing them: A case study of City of Tshwane Metropolitan Municipality, South Africa

Abstract

The problem of energy losses, both nationally and internationally, is a leading cause for the financial collapse of most utilities. A quantitative research approach was adopted for this study where a questionnaire was used to collect information from the participants. A total of 113 City of Tshwane (CoT) employees within the electricity division participated in the study. Descriptive statistics and inferential statistical methods were used to analyse the outcome of the survey. The study found that technical and non-technical losses are the major cause of revenue loss. Non-technical losses are caused either by inefficiencies in managing losses or by end-users being unwilling to pay for electricity. The study found that power theft through meter tampering, incorrect billing by employees, and cable theft were also major causes of energy losses. Illegal connections were found to be the major cause of energy losses, along with power theft and lack of resources. Deficiencies in infrastructure maintenance were found to be the main cause of technical losses. The study found that management of CoT is committed to managing energy losses, being aware of their impact on the financial well-being of the municipality. There is an established policy of managing energy losses and there is a plan to replace ageing infrastructure. Employees are continuously trained in accurate billing and metering as part of efforts to curb energy losses. The municipality is also engaged in efforts to put educational programmes in place to inform communities about electricity theft.