Energy Theft Reduction - Energy Theft
Energy Theft Reduction
The Retail Energy Code (REC) arrangements concerning Energy Theft are designed to support Energy Suppliers in complying with their obligations in Condition 12A of the Energy Supply Licence. This Condition includes that Energy Suppliers individually, and in cooperation with other Energy Licence holders, detect, investigate deter and prevent Energy Theft.
The REC Board maintains a Theft Reduction Strategy designed to support Energy Suppliers in minimising Energy in accordance with the objective set out in Condition 12A of the Energy Supply Licence and also based on an up-to-date cost-benefit analysis.
RECCo ensures that the ETTOS Service Provider provides the Energy Theft Tip Off Service (ETTOS). This is described in separate guidance.
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Theft Risk Assessment Service (TRAS)
The Theft Risk Assessment Service (TRAS) is the service via which Energy Suppliers are intended to maintain the arrangements required by Condition 12A of the Energy Supply Licences. The original TRAS procurement has now expired. For further detail please refer to Schedule 7 – Energy Theft Reduction, Annex 2.
Energy Theft Detection Incentive Scheme (TDIS)
The Code Manager administers the Theft Detection Incentive Scheme (TDIS) on behalf of RECCo. This includes working with RECCo to determine targets, administering monthly and annual reporting, and escalating issues where the Energy Theft Tip Off Service (ETTOS) reports are not accessed in line with the Unbilled Energy Code of Practice.
The Scheme applies to all Energy Suppliers and all Metering Points (Electricity) and/or Supply Meter Points (Gas).
For further detail please refer to Schedule 7 – Energy Theft Reduction, Annex 3.
Theft Estimation methodology
The REC Board maintains a methodology for determining the amount of gas or electricity which was the subject to an event Energy Theft taking place in Great Britain (the Theft Estimation Methodology).
It can be used as the conclusive means of determining the amount of gas and/or electricity which was the subject of Energy Theft. The REC Board will periodically review the methodology in consultation with interested persons and report annually on Confirmed Energy Thefts, the amount of gas and/or electricity which was the subject of such Energy Thefts, and the progress that is being made in reducing that figure.
The Methodology is available via the REC Portal.
Theft Target methodology
The REC Theft Target Methodology is established and maintained by the Code Manager as of the 1 April 2023. It is used to determine the Supplier targets for identifying instances of theft in relation to the TDIS. The objective of this methodology is to set targets that result in a net benefit to consumers as compared to taking no action, considering the likely cost of identifying a Confirmed Energy Theft.
The Theft Target Methodology for the 2023-24 Reporting Year is available here. Targets for the 2023-24 were published on the 28 February 2023 via the Performance Assurance Dashboards.
Supplier Monthly Theft Reporting
Energy Suppliers are required to submit Theft Outcome files via the REC Portal on the first working day of each month to allow the REC Code Manager can administer the TDIS. The files are required to include all confirmed thefts closed in the applicable month, as well as any investigations opened or updated in that month.
The file format of the Outcome files can be found in the Performance Assurance Report Catalogue, published on the ‘Operational Documents’ tab of the REC Portal.
The reporting timeframes Suppliers are required to adhere to are provided here.
If you find your file is rejected on upload, please refer to the File Validation Wiki page for further background and guidance.
Code Manager Theft Reporting
The REC Code Manager processes the Theft Outcome files submitted by Energy Suppliers each month and reports on the number of investigated and confirmed thefts through the Performance Assurance dashboard. Suppliers should review the dashboard monthly to confirm the information reported matches expectations. If there are differences in the figures reported to that expected, please report this to the Code Manager via the REC Service Desk within 10 working days of dashboard publication.
The REC Code Manager will aim to publish the results for the Reporting Year by the end of July, after the closing of the final query window. Incentive payment amounts will be communicated to each Party individually within 144 days of the end of the Reporting Year.
