Clarifications to the Theft Detection Incentive Scheme
Summary
The Energy Theft Detection Incentive Scheme (TDIS) seeks to encourage Suppliers to undertake theft investigations. Following the completion of the first scheme year operated wholly under the REC, there have been several areas of the Code identified where additional clarity would benefit the administration of the TDIS.
Latest update and next planned activity
Date of latest update
Latest Update
02/04/2023 - Change Proposal implemented on 01 April 2023
Impacts Overview
Impacted REC Parties and Market Participants
Energy Supplier
Distribution Network Operator
Gas Transporter
Meter Asset Provider
Other
Impacted REC Documents
Schedule 1 - Interpretations and Definitions
Schedule 7 - Energy Theft Reduction
Priority and rationale
Standard
Priority last updated on 29 May 2026
Solution development
Problem Statement
To enable REC Parties and their agents to successfully meet the obligations of the TDIS, the REC needs to accurately reflect the intention of the requirements and current processes.
Proposed solution summary
- As an Energy Supplier, I need my TDIS obligations to be clear to ensure I can meet the requirements appropriately.
- As the Code Manager, I want all Suppliers to be clear on the required Energy Theft reporting so that the scheme can be effectively administered.
- As RECCo, I want to ensure that all Suppliers have clear obligations to ensure the effective administration of TDIS to support the Theft Reduction Strategy.
No documents available.
Change Plan
Initial Assessment Report Issued
Completed
Start:
23 Jan 2023Due:
27 Jan 2023Completion:
27 Jan 2023Change Proposal Plan Issued
Completed
Start:
27 Jan 2023Due:
27 Jan 2023Completion:
27 Jan 2023Preliminary Change Report Issued
Completed
Start:
07 Feb 2023Due:
17 Feb 2023Completion:
17 Feb 2023Consultation Issued
Completed
Start:
17 Feb 2023Due:
17 Feb 2023Completion:
17 Feb 2023Responsible Committee Decision
Completed
Start:
17 Feb 2023Due:
24 Mar 2023Completion:
24 Mar 2023IAR and CPP Approval
Completed
Start:
27 Jan 2023Due:
07 Feb 2023Completion:
07 Feb 2023Original submission
Change details
- - -
23 Jan 2023
Change details
Clarifications to the Theft Detection Incentive Schemes
Theft of energy is currently estimated to cost bill-paying consumers in excess of £1billion per year. It also poses serious risk to people and property.
The Gas and Electricity Theft Detection Incentive Schemes (TDIS) seek to encourage suppliers to undertake theft investigations. The schemes emerged from Ofgem work to strengthen the obligation on energy suppliers to prevent, detect and investigate theft. The gas scheme was introduced into the Supply Point Administration Agreement (SPAA), taking effect June 2017, with the electricity scheme subsequently being introduced into the Distribution Connection and Use of System Agreement (DCUSA) in June 2018. Both schemes migrated to the REC with effect 1 April 2021.
Following completion of the first scheme year to be operated wholly under the REC, including the recent collection and distribution of monies payable under the scheme, we have identified several areas where further clarity may improve the administration of the scheme. These changes have also been informed by feedback to a recent stakeholder survey on the operation of the scheme, and are being undertaken ahead of a more holistic review of theft related incentives, actioning a recommendation of a recent Theft Reduction Workshop.
The Gas and Electricity Theft Detection Incentive Schemes (TDIS) seek to encourage suppliers to undertake theft investigations. The schemes emerged from Ofgem work to strengthen the obligation on energy suppliers to prevent, detect and investigate theft. The gas scheme was introduced into the Supply Point Administration Agreement (SPAA), taking effect June 2017, with the electricity scheme subsequently being introduced into the Distribution Connection and Use of System Agreement (DCUSA) in June 2018. Both schemes migrated to the REC with effect 1 April 2021.
Following completion of the first scheme year to be operated wholly under the REC, including the recent collection and distribution of monies payable under the scheme, we have identified several areas where further clarity may improve the administration of the scheme. These changes have also been informed by feedback to a recent stakeholder survey on the operation of the scheme, and are being undertaken ahead of a more holistic review of theft related incentives, actioning a recommendation of a recent Theft Reduction Workshop.
Current confusion over the requirements of the scheme is creating an additional administrative burden for both participant Suppliers and the Code Manager, and may be undermining the overall efficacy of the scheme.
The clarification and tightening of certain TDIS requirements will give Suppliers further certainty and increase the confidence that their investment into detecting and investigation theft will earn a reward payment under the scheme.
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Impacts
Other (please specify in the Additional information box below)
Other (please provide details in Additional information box below)
No direct consumer impacts.
Schedule 1 - Interpretations and Definitions, Schedule 7 - Energy Theft Reduction
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Energy Suppliers, Distribution Network Operators, Gas Transporters, Meter Asset Providers
The issues considered by the proposed group are likely to be of interest to an extended range of market participants and stakeholders, including PPM Infrastructure Providers, and payment solutions providers and consumer groups.
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Priority & timing
No
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These changes are intended to have effect from the start of the 2023/24 Theft Detection Incentive Scheme year on 1 April 2023.
Further potential improvements to the efficacy of the TDIS but which cannot practicably be implemented by 1 April 2023 and/or require further develop will be subject of a separate change proposal targeting implementation for the 2024/25 TDIS Reporting Year.
Further potential improvements to the efficacy of the TDIS but which cannot practicably be implemented by 1 April 2023 and/or require further develop will be subject of a separate change proposal targeting implementation for the 2024/25 TDIS Reporting Year.
These changes are intended to have effect from the start of the 2023/24 Theft Detection Incentive Scheme year on 1 April 2023.
No details provided
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Activity
Proposed solution summary changed to As an Energy Supplier, I need my TDIS obligations to be clear to ensure I can meet the requirements appropriately.As the Code Manager, I want all Suppliers to be clear on the required Energy Theft reporting so th…
Proposed solution summary changed to As an Energy Supplier, I need my TDIS obligations to be clear to ensure I can meet the requirements appropriately.As the Code Manager, I want all Suppliers to be clear on the required Energy Theft reporting so that the scheme can be effectively administered.As RECCo, I want to ensure that all Suppliers have clear obligations to ensure the effective administration of TDIS to support the Theft Reduction Strategy..
Show moreImplementation Date has been updated to 01 Apr 2023.