Establish a baseline and quantification of the losses as part of a diagnostic to be followed by specific study. Utilities need to develop a baseline distinguishing and calculating technical and non-technical losses and their evolution over time with a definition of “as is” – the present situation and starting point. The quantification would be expressed in technical and monetary terms. Due to the seasonality impacts, the baseline should be based on minimum of a full year and possible two-year information. Ideally this study should be done by specialized and independent firms with the support of the operational team of the utility. The reference and annex sections present information on the different methodologies a utility can use to estimate its losses.

After establishing the baseline, the utility needs to develop a detailed study with a roadmap establishing and prioritizing the activities needed for the reduction of technical and non-technical losses. The study itself must establish a short and long-term action plan with the necessary investments, the origin of the losses (types of consumers and geographic location if possible, with Geographic Information System (GIS), the commercial system database, the tools to be used (hardware and software), the goals by period, and a responsible and dedicated team. These activities are described next in more details