Electrokit | IADB

Public Actions and State Leadership Regulatory and normative aspects

Regulatory and normative aspects

Take into consideration regulatory aspects. Utilities can engage the regulatory authority to ensure the proper incentive mechanisms to unlock reductions in losses are in place. This includes the discussion with the regulators to identify impacts in the calculation of electricity rates in such a way as to allow affordability to the most vulnerable population. Also, it is important to review if supply or grid codes are incentivizing loss reduction.


In addition, and in collaboration with the regulator, the utility should consider the compatibility of the incentives, as these have been determinant factors for the reduction of losses . These include: (i) establish rate loss limit. A non-technical loss limit value can be attributed to the rate, since the company will not be able to absorb all the economic loss, but it will have incentives to reduce it (decreasing limit); (ii) define the loss limit: determine the regulatory levels of non-technical losses through a comparative analysis, which considers the level of economic and social complexity in the region; and (iii) facilitate technical regularization: in low-income consumers with fraud, allow it to be possible to technically regularize this situation by supplying a standard kit, the cost of which could be financed in installments to be collected in future energy bills.