Revealed: Energy theft reports soar amid rising gas and electricity bills

Reports of energy theft have soared as Britons face rising bills for electricity and gas, figures show.

With the cost of living crisis mounting, the number of reports made to the Crimestoppers charity has almost trebled since 2017-18 – with a rise of more than 20 per cent in just six months.

The chair of an influential select committee of MPs warned the increase shows the “desperation” of households hit by rocketing electricity and gas prices.

Electricity theft, which pushes up bills for customers, carries a maximum prison sentence of five years, while gas theft is also illegal. Crimestoppers figures show 8,289 reports of energy theft in the UK in the year to the end of July, a rise from 2,876 reports in the 12 months to July 2018.

In the six months to the end of July, there were 4,559 energy theft reports to Crimestoppers in the UK, up from 3,730 in the six months before that – representing a 22 per cent increase when comparing the two periods.

Crimestoppers is contracted by the non-profit Retail Energy Code Company (RECCo) to run the energy theft tip-off service, allowing people to anonymously make reports. RECCo’s website explains: “Crimestoppers securely notify the tip-off to the relevant gas or electricity supplier for investigation.”

Additionally, energy fraud reports to trade body UK Revenue Protection Association (UKRPA) increased by 54 per cent in just six months – from 717 in the six-month period from July to December 2021, up to 1,104 from January to June this year. Police forces in England and Wales received nearly 3,600 reports of “dishonest use of electricity” in the year to March, up 13 per cent year on year.

Peter Smith, director of policy and advocacy at the fuel poverty charity National Energy Action, said: “Whatever the motivations, it’s truly shocking that despite the danger and the criminality of energy theft, it appears to be on the rise.”

The energy price cap rose to £1,971 in April, up from £1,277. Before the government intervened, it was set to increase to £3,549 this month, with a prediction that by April next year it could top £6,000. But under the government’s “energy price guarantee” implemented this month, for the next two years a typical household is expected to pay, on average, around £2,500 a year on its energy bills.

Labour MP Darren Jones, chair of the business, energy and industrial strategy select committee, said: “The increased reporting of energy theft highlights the desperation households are feeling as prices skyrocket and little help is offered to the lowest earners.

“My committee has urged the government to provide permanent help to households by kickstarting a national home insulation programme that would reduce demand and carbon emissions, and by introducing a social tariff that would see the poorest households receive cheaper bills.”

Online posts

An investigation by The Independent uncovered a channel on encrypted messaging app Telegram, with thousands of subscribers, where people were encouraged to have their meters replaced at what we discovered was a cost of hundreds of pounds.

Posts on the Telegram channel offered a service to replace people’s meters, as well as falsely claiming the cost of gas and electricity was already covered by taxes.

In fact, anyone taking part in the scheme could be committing energy theft, while experts warn that removing or replacing a meter without a supplier’s agreement is also illegal.

The channel, called Replace Your Meter UK, has been spreading misinformation about electricity payments and encourages readers to sign up for an appointment to have their meter changed. Posing as a potential customer, The Independent was told over email: “We ask for donations for meter changes once the work is completed.

“ELECTRIC METER – £250 (Will be more if a three-phase meter is required).

“GAS METER – £300/£380 (Bigger gas meters are more expensive, we can quote for them and some gas meters require new parts and labour, this can be more expensive. Gas engineer will advise at the time). This includes time, travel, Labour and materials.”

The sender explained, “We are taking booking for specific areas of the country on different days,” before requesting full address, details of what meter was required, as well as pictures of the current one.

They added: “Please do your due diligence regarding your meter replacement. Look at our Telegram & Instagram, where we pin links & videos etc at the top of the chat box. This will help you no end with understanding the whole process. Any further questions, please message us direct, we’re happy to help.

“We want to get as many people as possible in the know about meter replacement, so please tell your friends & family and please share all of our profiles across all the social media platforms with the link below.”

Asked what happens when meters were removed to stop paying a supplier, they said consumers should pretend they were leaving their address: “Call your supplier with your final meter readings, tell them that you are moving house and need to pay your bill. Going forward you should only receive letters addressed to the occupier.”

Asked whether the outfit had actually changed many people’s meters so far, we were informed: “We have weekly bookings where people change their meters over.”

Misinformation

The Independent’s investigation suggests the channel was linked to South London Services Ltd, a company run by former DJ Ben Johnston, which was dissolved in July 2019. However, Mr Johnston has denied any involvement in the channel. South London Services Ltd had a county court judgment against it worth £1,672, issued on 29 April 2019.

Mr Johnston, 43, is now listed as a director of another company, South London Electrical Services Ltd, incorporated in May 2019. After The Independent approached Mr Johnston for comment, a Companies House filing shows that he made an application last month for the firm to be struck off the register.

On the Replace Your Meter UK channel, which had more than 3,000 subscribers, posts by a channel administrator have spread misinformation about bills. One message on 22 April read: “Did you know that in the United Kingdom we have the legal right to FREE gas, electric and water? Seems unbelievable right??

“But, what isn’t free, are the meters that the energy companies provide us with. That is what we are enticed into a contractual agreement with.

“It is your right as a UK citizen to supply your own meters, as long as they are installed safe and correctly, and that they are up to British standards.

“We have had the wool pulled over our eyes for too long. Stand up against the criminal system, that is draining us of our wealth, and keeping us in the position they’ve designed.

“This Telegram group is to get the word across to as many people as possible, so please share far and wide.

“We’re offering a gas and electric meter replacement service. We will be serving all of the uk, in a bid to get everyone what they’re LEGALLY entitled to. This may sound crazy, but we have the laws and documents to back this up.”

Another post, on the same day, said: “GAS, ELECTRIC AND WATER ARE FREE! THIS IS OUR LEGAL RIGHT AS UK CITIZENS. The energy that we are supplied, is already paid for. Who by? Us! Through our taxes... This is hard to get your head round I know, so familiarise yourself with the following information/laws/videos.”

Meanwhile, an Instagram page for Replace Your Meter UK, with more than 7,000 followers, has also been advertising appointment dates. The Instagram page linked to a webpage carrying links to different social media accounts, adding the message: “Replace Your Meter, stop paying for energy TWICE”. The outfit’s Twitter profile even reads: “Do you realise we already pay for our energy?? Replace Your Meter, and lose your bills.”

Criminal charges

Jon Dixon, of the Retail Energy Code Company, told The Independent that this advice was incorrect since consumers are required to pay suppliers for energy used.

He said: “Removing or replacing a meter without agreement from the supplier is in contravention of the Electricity and Gas Acts, they will still be required to pay for the energy used and will face additional costs to correct the metering installation. They could also risk facing criminal charges.

“There is also the safety risk to the consumer and their neighbours of allowing individuals without the correct accreditation to work on the energy installations in their homes and business.”

He said the advice to claim to be moving house could be considered a conspiracy to defraud.

Gavin Straughan, of the UKRPA, said: “In times of rising energy costs, it is unacceptable that people would take advantage of people struggling to pay their bills, offering services that could lead to people being criminally prosecuted. All legitimate advice to customers struggling with their energy bills is clear: speak to your energy supplier.”

After Mr Johnston was contacted for comment, the Replace Your Meter UK Telegram channel, Instagram and Facebook pages were all taken down. A similarly named “Replace UK” website, linked to the email address used to contact The Independent, was also taken down.

A lawyer acting for Mr Johnston told The Independent that the replacement of meters was a “completely legal service” carried out by qualified engineers. They said Mr Johnston did not create or run the Telegram channel and was not responsible for the posts. The lawyer also claimed that the email about moving house had been sent by a member of Mr Johnston’s team and all staff had been “actively retrained” since The Independent’s inquiries.

They said customers had been advised to undertake their own due diligence regarding the law and that they “provide direct links to the legislation and advise contact must be made with the energy supplier to advise of the replacement of the meter”.

The lawyer said: “Failure to pay for gas or electricity used in the home is theft if there is the intention to permanently deprive the providers of their product. A replacement of the meter does not do this.

“Meddling with a gas meter can be dangerous. This is not what Replace UK does. There is also absolutely no meter tampering that is undertaken. That would be a criminal offence and could amount to prosecution.”

They added that false information relating to the payment of energy bills “within the Replace UK website” had been deleted.