What are Losses? In simple terms, Network Losses refer to the difference between the energy entering our electricity distribution network and the energy leaving it. Electricity enters our network in one of two ways; either from the Transmission System or from generators connected directly to our Distribution Network. Energy leaves our network to be delivered to customers. When we compare the total electricity we meter entering the system with the total electricity that is recorded leaving the system and being delivered to customers, the total difference is currently estimated at between 5 and 6%. Within electricity distribution, losses are made up of both Technical and Non-Technical Losses.