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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 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. |