Smart consumption meters electricity put an end to electricity theft, which has increased twentyfold over the past 15 years. Despite the fact that HEDNO points out that the recession due to pandemic the period 2020–2021 may create obstacles to efforts to reduce electricity theft, however, the Energy Regulatory Authority estimates that «the large-scale replacement of end-use cash meters with smart meters is expected to have a direct positive impact on the detection and elimination of electricity theft involving meter tampering and, more generally, active supplies.».
The above results from the decision of the Regulatory Authority for Energy (RAE), which approved the regulated revenues of the Network Operator for the period 2021-2024, a decision taken while the process of selling 49% of HEDNO's shares by its parent company PPC is in its final stages.
RAE also sets financial incentives/disincentives for HEDNO linked to the results in the fight to reduce electricity theft.
According to the data included in the decision, the network's “non-technical losses,” i.e., electricity theft, have increased from 0.2% (2003-2004) to 1.1% (2011-2013), 3.9% (2015-2016) and 4.4% (2018-2019).
According to RAE, based on the cash replacement program proposed by HEDNO (starting in 2022 and ending in 2030), electricity theft is expected to decline to 2003-2004 levels (0.2%) in 2031. Meanwhile, total losses (including those not due to theft but to technical parameters) will decrease at an average rate of 5.1% during the period 2020-2031.
According to the decision, the permitted revenue of HEDNO is set at €776 million for this year, €781 million in 2022 and 2023, and €804 million in 2024.
