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Ofgem wants power firms to tackle electricity theft Ofgem wants power firms to tackle electricity theft
(35 minutes later)
The energy regulator wants power firms to do more to combat electricity theft, a third of which is stolen each year to power cannabis farms.The energy regulator wants power firms to do more to combat electricity theft, a third of which is stolen each year to power cannabis farms.
Ofgem on Wednesday published proposals to combat a problem that it says costs customers £200m a year. Ofgem has published proposals to combat a problem that it says costs customers £200m a year.
Ofgem said new rules should to force suppliers to detect and investigate problems, or risk a fine.Ofgem said new rules should to force suppliers to detect and investigate problems, or risk a fine.
The regulator estimates that there are up to 25,000 cases of electricity theft each year.The regulator estimates that there are up to 25,000 cases of electricity theft each year.
Under the proposals, suppliers are being asked to set up a national theft-risk assessment service to help them target premises where there are strong suspicions that electricity is being stolen, most commonly through tampering with meters.Under the proposals, suppliers are being asked to set up a national theft-risk assessment service to help them target premises where there are strong suspicions that electricity is being stolen, most commonly through tampering with meters.
Ofgem says theft costs paying electricity customers the equivalent of £7 each a year.Ofgem says theft costs paying electricity customers the equivalent of £7 each a year.
The Ofgem proposals include:The Ofgem proposals include:
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.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.
"All these measures will help to improve the confidence of consumers, who want reassurance that the energy market is fair.""All these measures will help to improve the confidence of consumers, who want reassurance that the energy market is fair."
Energy UK, the trade association for the industry, welcomed Ofgem's consultation.Energy UK, the trade association for the industry, welcomed Ofgem's consultation.
"Electricity theft is dangerous and illegal," it said. "Electricity theft also costs honest customers money which is why energy companies take this - and gas theft - very seriously."Electricity theft is dangerous and illegal," it said. "Electricity theft also costs honest customers money which is why energy companies take this - and gas theft - very seriously.
"Ofgem's consultation is a positive move to cut down crime, and we look forward to working closely with them and others in the industry on this.""Ofgem's consultation is a positive move to cut down crime, and we look forward to working closely with them and others in the industry on this."
The deadline for responses to Ofgem's proposals is 28 August, with a theft-risk assessment service scheduled to be up and running in the first quarter of 2015.The deadline for responses to Ofgem's proposals is 28 August, with a theft-risk assessment service scheduled to be up and running in the first quarter of 2015.