Firms caught stealing power face closure
Cost of electricity theft amounts to around €400 mln per year and represents 4.8% of the market
In the effort to tackle power theft, the government has announced that businesses that steal electricity face temporary or permanent shutdown while electricians who make illegal connections will lose their license. It will also crack down on so-called “strategic defaulters,” defined as consumers who have changed providers at least twice in a period of five years while having unpaid debts.
According to Environment and Energy Minister Theodoros Skylakakis, the aim is to put an end to these scourges of the market that cost society as a whole hundreds of millions of euros annually.
The data presented by the minister at a press conference Thursday showed that the cost of power theft amounts to about €400 million per year and represents 4.8% of the total energy market.
The inspections conducted by the Hellenic Electricity Distribution Network Operator (DEDDIE) identify 13,000 cases of electricity theft per year, which according to the minister means that the actual number is 10 or even 20 times higher.
A staggering 50% of the cases involve electricity theft up to €4,500, 25% between €4,500 and €10,000, and 25% above €10,000.
The majority of electricity thefts are carried out by businesses, which are the main focus of the measures announced.
The package introduced by Skylakakis also includes preventive measures. DEDDIE will request a new Installer’s Declaration of Responsibility for a change of business operator for the same supply, and will also carry out a spot check of those declarations of responsibility with the register of installer electricians. The collection of the overdue and adjudicated claims of the DEDDIE related to the theft of electricity will be done through the Central Union of Greek Municipalities (KEDE).
In order to deal with “energy tourism” – i.e. strategic defaulters – consumers will not be able to switch to a new provider if they have not previously paid the last provider they were with. As the minister pointed out, the five-year period starts from 1/1/2020 so as not to include the difficult years of the crisis.
This regulation will supplement the market regulator’s (RAAEY) proposal, which grants the former provider the authority to request that the DEDDIE suspend the supply of electricity to a former customer who has not paid two bills. Additionally, the previous provider is granted the right to flag customers with outstanding debts on DEDDIE’s Thales platform.
