Energy Theft Is Costing UK Consumers Up to £28 a Year — and Lives Too

Energy theft is costing UK consumers up to £28 a Year. After years of silence, energy regulator Ofgem has finally approved the creation of a dedicated Energy Theft Unit (ETU) — a move that many say is too little, too late. Energy theft has become a widespread, organised, and deadly issue in Britain, and Ofgem’s delayed response has cost the public dearly.

The Cost of Inaction

According to research commissioned by the Retail Energy Code Company (RECCo), energy theft is costing UK consumers an estimated £457 million to £760 million per year. That equates to as much as £28 added to every household’s energy bill — every single year.

But the cost isn’t just financial. It’s human.

“Meter tampering leads to one death every 10 days in Great Britain,”
— Ofgem, June 2025 decision letter

The risks include electrocution, house fires, gas explosions, and severe burns — consequences not only for those committing the crime, but also for innocent neighbours, tenants, and emergency responders.

Energy Theft – The Crisis That Was Allowed to Fester

Despite being aware of these dangers, Ofgem left it to energy suppliers to investigate and prevent theft — a strategy that clearly failed. In Ofgem’s own words:

“Suppliers find it difficult to engage and secure police support… and the cost of investigating more complex instances of theft is a disincentive.”

In the vacuum left by weak enforcement, criminal enterprises flourished. Organised groups began offering meter tampering as a service, enabling cannabis farms, cryptocurrency mining, and other illicit operations. Tutorials on how to steal energy without getting caught are widely available on social media — a direct result of the lack of deterrence.

“There is little fear of prosecution.”
— Ofgem

Perpetrators often escape detection simply by switching energy suppliers. Ofgem concedes that “once the consumer switches supplier, the investigation of the theft stops” — a loophole that has effectively protected repeat offenders for years.

Enter the Energy Theft Unit

The newly established ETU, operated by the City of London Police, will finally bring coordinated enforcement to the table. The unit will be staffed with specialist officers and data analysts and is expected to:

• Investigate cross-supplier theft cases
• Support prosecutions
• Monitor social media for criminal promotion
• Coordinate intelligence industry-wide

The linked Referral Assessment Service (RAS) will act as a filter, forwarding only high-quality cases to the ETU.

The unit’s annual cost will be £1.6 million, rising to £2 million with the RAS included. Ofgem claims that even a 0.33% reduction in theft would make the project cost-effective. That’s a very low bar — and a telling one.

A Long-Overdue Step in the Right Direction

While the ETU is a positive step, it’s also a stark reminder of the damage caused by regulatory neglect. Energy suppliers have been calling for support for years. The public has paid the price — in pounds, in property damage, and in lives.

Ofgem itself now admits the system was broken:

“There is no coordinated action to address cross-supplier instances of energy theft… suppliers currently have no obligation to report energy theft as a crime.”
— Ofgem

The creation of the ETU raises several questions:

• Why did it take until 2025 to act?
• Why were suppliers left without enforcement support?
• Why were consumers expected to absorb the cost?

The Energy Theft Unit could reduce crime, save lives, and lower costs — but this should have happened years ago. Consumers deserve more than a fix — they deserve accountability.

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