Application of DMAIC Methodology to Improve the Non-Technical Loss Reduction Process in Nueva Ecija II Electric Cooperative, Inc, Area 1

Abstract

Electrical energy losses in the distribution and transmission lines accounts to any lost energy generated from the transmission network of a power plant or electric substation down to the consumers. These losses can be a result of different parameters and the vast amounts are considered to occur in the primary and secondary distribution lines which are classified as technical (TLs) and non-technical losses. Nueva Ecija II Electric Cooperative, Inc, - Area 1 (NEECO II- Area 1) have identified different parameters that causes these non-technical losses which is considered as one of challenges that has been existing for years as the company has recorded inconsistencies in meeting the standard set. Reducing these identified losses not only can improve distribution efficiency in the power transmission lines but also can reduce the cost of electricity among its customers. Considering the electrical losses recorded by NEECO II Area 1 for 2018 and 2019 utilizing the Synergi Electric system that they are using, there is a significant amount of non-technical loss which impact the integrity of the total output being generated in the distribution system.

NEECO II has been practicing a standard and conventional process of managing the non-technical losses but has not been consistent in doing such as they do not have a standard documented procedure in place. This study is focused on developing a process of energy management using the DMAIC methodology (Define, Measure, Analyze, Improve and Control) to reduce non-technical losses identified in the NEECO areas and its distribution lines. With the gathered data, the researchers aim to develop recommend process that can help better identify, detect, and minimize the occurrence of these causes, thus reduces the overall non-technical losses in the distribution system.