Energy Theft Reduction Strategy
Energy Theft Reduction Strategy
Energy Theft Reduction Strategy
RECCo's Role in Energy Theft Reduction
Energy theft is the unauthorised or illegal use of electricity or gas, including the interference and tampering with meters.
It’s hazardous to interfere with the energy supply – every year, it costs lives, causes injury, and destroys property. Damaging a gas supply can cause gas to leak into enclosed spaces, leading to explosions. Changing the wiring of a meter can make appliances live to the touch, risking shocks or burns. As well as causing severe harm, energy theft increases the cost of gas and electricity for consumers.
We are working with the energy industry on an Energy Theft Reduction Strategy – to keep people safe and costs down.
Current Theft Arrangements
Energy Suppliers and Network Parties (Distribution Network Operators and Gas Transporters) have a license condition to detect, prevent and investigate energy theft.
Obligations under Retail Energy Code (Schedules 7 and 8)
RECCo’s role is to assist Energy Suppliers and Network Parties with fulfilling their obligations.
Current Tools and Services
Energy Theft Reduction Programme Scope
Project Workstreams
Project/Activity: Smart Meter Alert Data
Overview/Aims
Work is underway to explore the feasibility of using Smart Meter data to improve the assumptions and data contained within the Theft Estimation Model (TEM). The intention is to complete testing (known as backtesting) on already reported thefts, to determine which, if any, Smart Meter alerts are correlated to instances of Energy Theft and could be used to better predict and detect energy theft in the future.
Project/Activity: Energy Theft Data Portal
Overview/Aims
The development of a dedicated portal to improve industry-wide data sharing. This could provide heat-mapping, trend analysis and threat assessments to be used by a variety of stakeholders to help develop their Energy Theft associated processes, policies and strategies.
Project/Activity: Improvements to the Theft Detection Incentive Scheme (2024/2025 scheme)
Overview/Aims
As the cost of undetected Energy Theft is currently socialised, it can be a commercial advantage to individual suppliers to not detect and investigate it; the Theft Target Methodology (TTM) will be reviewed and revised to ensure those best placed to manage risk are incentivised to detect and investigate Energy Theft.
Project/Activity: Threat Intelligence Monitoring
Overview/Aims
A trial of a threat Intelligence and social media monitoring service that will identify emerging trends, that can be used by RECCo and other interested/impacted stakeholders in the development of their processes, policies and strategies.
Project/Activity: Police Engagement and Partnership Feasibility
Overview/Aims
Development of proposals for a REC funded dedicated Police energy theft / fraud reduction unit; to enable a nationally consistent, robust and proportionate police and prosecutorial response to Energy Theft.
Project/Activity: Enforcement and Prosecution
Overview/Aims
The aim of this project is to produce comprehensive research on all possible legal avenues that may be available to RECCo and REC Parties to pursue prosecution, enforcement or other remedial actions against those who perpetrate or otherwise facilitate energy theft and/or fraud.
Related news
Partnering with City of London Police: Our Proposal for a Dedicated Energy Theft Unit
Call for case studies: Share your experience of commercial energy theft
A round-up of our second energy theft forum – November 2023
Introducing the Review of Energy Theft Processes
