In the literature, there are several methodologies to estimate technical losses in electrical distribution networks. The range of techniques is broad, ranging from basic techniques (based on loss factor, for example) to sophisticated ones (based on artificial intelligence). These methodologies are important, because the costs of technical losses represent a huge part of the total operation costs of distribution network operators (DNOs). However, the presence of clandestine connections, common in developing countries, was not considered in the methodologies encountered in the literature. Clandestine connections occur when a consumer has made his/her connection without DNO permission. In these cases, the amount of energy consumed by a clandestine "consumer" is a nontechnical loss (and, therefore, should be correctly computed as nonbilled energy). Therefore, a new methodology is proposed to consider the presence of clandestine connections in energy loss estimation in distribution systems.