NEWS

Energy theft costs British households more than they might realise. According to Ofgem data, it adds around £27 per year to a typical energy bill. That might not sound much, but across the country, it could add up to £760 million per year. And the impact isn’t only financial. From house fires to organised criminal gangs, energy theft brings real danger to homes and communities. Now, Ofgem has approved the creation of a dedicated police unit to target the problem directly. In this article, we’ll tell you more about it.

Hidden crime with deadly consequences

Energy theft is more than fiddling your meter. It comes with serious health and safety risks. Meters that have been tampered with can cause electric shocks, burns, gas leaks and even explosions. One staggering statistic is that energy tampering causes one death in the UK every 10 days.

The scale of energy theft is startling. 2022 research by the Retail Energy Code Company estimated that up to 2,837 GWh and 1,059 GWh of gas are stolen each year. At August 2024 prices, this could cost up to £760 million. 

Organised criminal groups are behind the majority of this theft. They offer meter tampering as a paid service and use stolen power to run illegal operations such as cannabis farms. Despite the severity and scale of energy theft, prosecution rates are low. This lack of enforcement has allowed energy theft to flourish.

How energy thieves exploit the system

Tampering with energy meters is completely out in the open in 2025. Social media platforms are filled with content explaining exactly how to bypass a meter, avoid detection and even how to behave during an investigation. Ofgem says that this open promotion leads to a wider perception that you won’t get caught if you steal energy.

There are also other well-known tactics to stay ahead of the system. One common method is to simply switch energy suppliers when your current supplier gets suspicious. Under current rules, suppliers are not allowed to block a switch or flag a customer as a potential energy thief. If a theft involves a meter registered to another supplier, there is no obligation to continue the investigation. That means an energy thief can move between providers without consequence, leaving suppliers unable to share critical information or follow up on complex cases.

These gaps in enforcement and communication make it easy for thieves and their associates to repeat their offences and hard for suppliers to take meaningful action.

The industry’s new weapons

To close these gaps, Ofgem has approved two changes to the Retail Energy Code – RO233 and RO234. These alterations will establish a national Energy Theft Unit (ETU) and a supporting Referrals Assessment Service (RAS). The ETU will be delivered in partnership with the City of London Police, the leading national force for fraud.

The ETU will bring together police officers and support staff who will be responsible for investigating and prosecuting energy theft. Crucially, the unit won’t be restricted by the limits of individual suppliers. It will have access to intelligence across the entire sector, which means it can spot patterns, connect cases, and follow through on investigations that would have previously fallen through the cracks.

Alongside the ETU, the new Referrals Assessment Service will act as the first line of defence. It will collect additional information on suspected energy theft cases and refer the most serious ones for thorough investigation. The RAS will take referrals from suppliers, network operators and other industry stakeholders, ensuring the ETU’s time is spent on the most egregious or actionable cases.

The two bodies will operate for an initial period of three years. It’s estimated that the two bodies will cost £2 million per year. However, the bar for delivering a financial benefit is low. Even a 0.44% reduction in energy theft would cover the cost of running these bodies. Ofgem believes the potential benefits will grow over time as the unit becomes more effective and acts as a deterrent to would-be energy thieves.

Protecting consumers and restoring control

This is the first time the energy sector has a dedicated, national-level policing response to power theft. The ETU’s ability to act independently of suppliers and coordinate across the whole market fills a major gap in the current system.

It’s also a clear signal to offenders. The days of avoiding detection by switching suppliers or following advice on social media are coming to an end. With the added ability to monitor online activity and conduct public outreach, the ETU will not only respond to energy theft but also work to prevent it.

The problem of energy theft has gone unchecked for too long. In the name of protecting consumers and restoring fairness, we hope these initiatives succeed.