Comment by mixdup
20 days ago
I mean this is the case universally, even if the losses aren't in a specific line item the cost of generating that power has to be covered overall
There's usually an incentive to solve this though because this shrinkage, in retail terms, would be handled at the cost of power generated (without any profit margin) whereas if it was sold to a paying customer it'd have a margin built in. If the Greek utilities are allowed to make a profit on that losses line item, that is insane
If a utility is regulated to a set profit outcome, it will make a profit on stolen electricity just via math.
it depends on how the regulations are written. not every single cost gets to go into the guaranteed return on equity. Probably plenty of examples where it is, but also there are definitely a lot of examples where that's not true. Given how militant most utilities are at preventing theft, either parent comment OP is just being cynical or there is something very off about the situation there vs. most places