Ofgem, the UK energy regulator, has issued a warning that illegal tampering with electricity meters is putting lives at risk and costing consumers £200 million annually. The regulator estimates there are up to 25,000 cases of electricity theft each year, with a third linked to cannabis farms.
In new proposals, Ofgem wants power suppliers to do more to detect and investigate theft, or face fines. Suppliers would be required to set up a national theft-risk assessment service to target premises where electricity is likely being stolen, often through meter tampering.
The cost of theft is equivalent to £7 per year for each paying customer, according to Ofgem. Andrew Wright, Ofgem chief executive, said: 'The reforms build on similar obligations we introduced at the start of this year for suppliers to address gas theft more vigorously.'
Energy UK, the industry trade association, welcomed the consultation, stating: 'Electricity theft is dangerous and illegal... Ofgem's consultation is a positive move to cut down crime.' Ian Peters of British Gas added that the annual cost of gas and electricity theft could be up to £500 million.
The proposals also include an industry code of practice for theft investigations, coordination with the Home Office and police on cannabis farm-related theft, and sharing best practices. The deadline for responses is 28 August, with the risk-assessment service expected by early 2015.
