This technical note from USAID’s energy specialists explains electricity system losses and why development practitioners should care about them. The note also includes strategies to address losses in communities that are particularly difficult to serve such as urban squatter settlements.

Total transmission and distribution losses (T&D losses) are the canaries in the coal mines—they are the primary indicator by which you can quickly judge the financial and operational health of an electricity utility. Addressing losses is of high importance to utilities and is often a key component of a larger utility reform or transformation strategy.

By assisting utilities in improving their operational and financial performance, USAID can help transition countries’ power sectors away from dependency on Government and donor subsidies towards self-sustaining and revenue-producing sectors that attract private investment and meet their countries’ needs for accessible, reliable and affordable power.