Transmission and distribution losses in the electricity sector occur when the amount of electricity generated is greater than the amount of electricity delivered to end-users. Losses occur from both technical causes, for example from distribution lines that are too long or inappropriately sized conductors, as well as non-technical causes, for example theft, which is especially common in some emerging economies.
There are a number of ways to reduce transmission and distribution losses. Some of the options to reduce technical losses include: replacing incorrectly sized transformers, improving the connection quality of conductors (power lines), and increasing the availability of reactive power by installing capacitor banks along transmission lines. To reduce non-technical causes, policymakers can target theft by making it harder to steal power from lines.