Proposal submitted to Ofgem for dedicated police unit to tackle energy theft

May 8, 2025

A formal proposal has been submitted to Ofgem to create a dedicated police unit targeting energy theft—a growing crime that endangers public safety, fuels organised criminal activity, and pushes up bills for honest customers.

What is being proposed?

The Retail Energy Code (REC) Change Panel has recommended a change proposal to fund a dedicated police unit to tackle energy theft, modelled on the insurance industry-funded Insurance Fraud Enforcement Department (IFED).

If approved, the proposal would see RECCo partner with the City of London Police—the national lead force for fraud—to establish and fund an Energy Theft Unit (ETU). This unit would serve as a focal point for coordinated industry efforts to investigate, disrupt, and prosecute those who engage in or facilitate energy theft, which is often linked to organised crime.

The proposal has now been submitted to Ofgem for a decision.

Why does it matter?

Energy theft remains a serious and growing issue across Great Britain. Based on December 2024 energy prices, it is estimated to cost consumers between £457 million and £760 million annually, as outlined in our published Outline Business Case.

Tampered meters and illegal connections not only drive up bills for honest consumers but also pose significant safety risks, with some cases resulting in fatal incidents.

What is the ongoing challenge?

Although the REC currently includes tools such as the Energy Theft Tip-Off Service (ETTOS) and the Theft Detection Incentive Scheme (TDIS), enforcement remains limited.

More than 12,000 ETTOS reports were received in 2024 alone, with numbers rising year on year. Industry feedback continues to highlight challenges in securing police support, resulting in inconsistent prosecution and weak deterrents.

Organised criminal groups have exploited these gaps, openly advertising illegal meter tampering services and targeting vulnerable households online.

While industry parties have licence obligations to prevent, detect, and investigate energy theft, their powers and resources remain constrained. Industry feedback has consistently highlighted difficulties securing police support, resulting in inconsistent prosecution and weak deterrents.

This change proposal aims to address the problem directly by providing industry parties with the support they require while recognising the limitations and competing priorities police forces face.