Electricity and gas theft remain a significant issue for the energy sector, driving up consumer costs and jeopardising safety. We commissioned research in 2022 that estimated energy theft in Great Britain at between 636–1,059 GWh of gas and 1,703–2,837 GWh of electricity, costing between £0.9 billion and £1.4 billion and adding about £50 to each household bill. While energy prices have decreased since 2022, the same volume of stolen energy today is valued at £457–£760 million.
The dangers of energy theft extend beyond financial losses. Many individuals involved in or impacted by meter tampering are unaware of the significant safety risks. Through the Stay Energy Safe campaign, in partnership with Crimestoppers, we aim to raise awareness of these dangers. The campaign highlights how rogue landlords and scams can mislead victims, putting families in harm’s way. Although official data on incidents caused by tampering is limited, RECCo estimates that around 280 serious incidents occur annually, some with tragic consequences, including loss of life.
Our proposal
Despite energy companies’ efforts to prevent and investigate theft, they often face barriers, such as limited police engagement, which hampers effective deterrence. Drawing inspiration from the insurance sector’s specialized police unit for fraud, RECCo proposes the creation of an Energy Theft Unit (ETU). This dedicated unit would focus on addressing energy theft by collaborating with law enforcement to enhance investigations and prosecutions.
In tandem, we would establish a Referral Assessment Service (RAS) to streamline the handling of theft reports. The RAS would assess referrals, ensure quality control, and consolidate data to support targeted investigations—particularly against organised crime networks and those exploiting vulnerable consumers.
This new approach would complement existing initiatives, such as the Theft Detection Incentive Scheme and the Energy Theft Tip-Off Service, strengthening the sector’s ability to tackle theft comprehensively.
Read and respond to the business case
The business case for these proposals, published today, builds on stakeholder feedback from our Strategic Outline Case and aligns with the commitments set out in our 2024–25 Forward Work Plan. By fostering collaboration and innovation, we aim to make a meaningful impact on this pressing issue, safeguarding consumers and supporting the sector’s integrity.
Read the proposal in full here. The consultation on this proposal is open until the close of play on 6th December 2024. You can submit your consultation response via this form or email your response to theft@retailenergycode.co.uk
