Technical and Commercial Loss Reduction Strategies for Ibadan Electricity Distribution Company

This study evaluates and recommends technical and commercial loss reduction strategies for the Ibadan Electricity Distribution Company serving Oyo, Ogun, Osun, Kwara, and Ekiti States in South West and North Central Nigeria. Aggregate technical and commercial losses at IBEDC are significantly above the targets set by the Nigerian Electricity Regulatory Commission, eroding the company's financial viability and limiting investment in network improvement. Loss data from IBEDC's billing and network management systems were obtained for 24 months and disaggregated by feeder and district. Technical loss estimation using load flow simulations was performed for ten representative feeders to separate technical losses from commercial losses. Structured interviews were conducted with 20 IBEDC commercial and technical staff. Results indicate that commercial losses, predominantly from meter bypass, unmetered connections, and billing errors, constitute a significantly higher proportion of total system losses than technical losses on most feeders. Feeders serving dense informal settlements in Ibadan, Abeokuta, and Osogbo show the highest commercial loss ratios. Technical losses are highest on long rural feeders with low conductor cross-sections and numerous distribution transformers. Recommended strategies include accelerated installation of smart metering, blocking of illegal connections through increased field enforcement, load balancing of distribution transformers, and reconductoring of the highest-loss rural feeders. A phased investment model prioritising commercial loss recovery measures on grounds of higher return on investment is presented. Keywords: technical losses, commercial losses, electricity distribution, IBEDC, smart metering.