What is the Theft Detection Incentive Scheme?
The Theft Detection Incentive Scheme encourages suppliers to take proactive action by providing financial incentives for investigating suspected theft and rewarding confirmed detections. The aim is simple: reduce losses that would otherwise feed into consumer costs, while strengthening safety and deterrence across the market.
Under Condition 12A of the Energy Supply Licence, suppliers must tackle energy theft both individually and in collaboration with other licence holders. To support that, the Retail Energy Code Board maintains a regularly updated Energy Theft Reduction Strategy, including a cost–benefit analysis to guide activity and investment.
How does it operate?
RECCo oversees the Theft Detection Incentive Scheme’s administration and manages invoicing, whereas the REC Code Manager runs the day-to-day operations, including:
- Setting energy theft detection targets
- Managing reporting
- Providing support and guidance to energy parties
Did the scheme deliver on time and on budget?
The scheme is open to all energy suppliers and applies to all Metering Points (electricity) and Supply Meter Points (gas).
In the 2024–25 scheme year:
- £5.7 million was invoiced for the gas scheme
- £4.2 million was invoiced for the electricity scheme
Suppliers who qualified for credits received payments on schedule, whereas those who did not qualify for credits contributed to the scheme, in line with agreed rules.
We’ve received 99.34% of electricity payments and 99.72% of gas payments from energy suppliers that were due to contribute to the scheme for 2024–25. Funds have been paid out to suppliers that are due to receive payment from the scheme, and these are all the expected payments from the scheme.
How does it help maintain a fair market and protect consumers?
The scheme and the wider strategy combine to help energy suppliers reduce losses, improve deterrence, and protect consumers from the knock-on costs of energy theft.
If you have any questions, please contact enquiries@recmanager.co.uk
