About the Scheme
The Theft Detection Incentive Scheme (TDIS) plays a critical role in encouraging Energy Suppliers to take proactive measures to combat energy theft. TDIS provides financial incentives to Energy Suppliers for investigating cases of theft and rewarding confirmed theft detections. This reduces the economic burden on consumers and the potential for harm and fatalities.
Under Condition 12A of the Energy Supply Licence, Energy Suppliers must deter and address energy theft independently and collaboratively with other Energy Licence holders. To support them in this responsibility, the REC Board maintains a regularly updated Theft Reduction Strategy, incorporating a cost-benefit analysis to guide suppliers’ activities.
RECCo oversees the administration of the scheme and manages the invoicing. Meanwhile, the REC Code Manager is responsible for the scheme’s day-to-day-operation, which includes:
• Setting energy theft detection targets;
• Managing reporting processes; and
• Support and guidance to Energy Parties.
Making Payments On Time and Budget
The scheme is open to all Energy Suppliers and applies to all Metering Points (Electricity) and Supply Meter Points (Gas). In the 2023-2024 scheme year, £3.3 million for the gas scheme and £4.5 million for the electricity scheme were invoiced, with payments successfully distributed to participating Energy Suppliers.
Thanks to the efficient management of the cash collection, Energy Suppliers who met their targets received timely compensation, while those who did not were required to contribute to the scheme. Payments were distributed according to established timelines and objectives.
Supporting Market Integrity and Consumers
Through the TDIS and broader Theft Reduction Strategy, we’re committed to supporting Energy Suppliers in their efforts to protect consumers, reduce losses, and uphold the integrity of the energy market.
