Energy theft potentially adds an extra £50 to the typical household’s yearly bill
October has already witnessed an increase in the energy price cap, pushing up household bills just as many prepare to switch the heating back on, with energy debt hitting record levels. Amid this perfect storm, thousands are turning to an illegal method of cutting energy costs, with money experts cautioning it could end up costing them far more than just cash in the long run.
Also known as energy theft, this tactic involves people tampering with their energy meter so that it fails to accurately record their consumption. Roughly 250,000 households are believed to be engaging in this ‘DIY discount’ according to Ocean Finance experts, costing the UK approximately £1.5billion annually and potentially adding an extra £50 to the typical household’s yearly bill.
Fiona Peake, consumer money expert at Ocean Finance, said: “When people feel backed into a corner, it’s easy to see why they might be tempted by shortcuts. But tampering with your meter isn’t a clever hack. It’s a dangerous, illegal move that could leave you much worse off.
“You could face up to a five-year prison sentence, be forced to pay back the cost of any stolen energy, and cover repairs that could run into thousands. On top of that, there’s a serious risk of fire, explosion, or electrocution.
“It’s time to face up to the scale of the problem, but without blaming people for struggling. No one should be risking their family’s safety to keep the lights on. The reality is that millions of people in the UK are finding it hard to keep up with bills, and support isn’t always easy to access or even well-publicised.”
To aid those desperate enough to resort to illegal hacks, Peake offered five legitimate cost-cutting methods that can legally reduce your energy bill. Starting with a simple conversation with your supplier who might be able to arrange a repayment plan, provide emergency credit if you are on a prepay meter, or link you with support schemes.
Peake highlighted: “It’s not always obvious, but help is available, and you won’t get it if you don’t ask.”
She also encouraged people to verify their benefit entitlement as the Department for Work and Pensions reopens its seasonal support, like the Warm Home Discount scheme. This provides a one-off £150 discount on energy bills.
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Winter Fuel Payments and Cold Weather Payments are also accessible to assist struggling households who meet the eligibility criteria. Lastly, make the most of all the technology at your disposal such as smart meters and energy tracking apps which can identify patterns in your energy usage and spotlight some easy changes that could save money.
Consider switching to a night-time chore routine if you’re on tariffs that offer off-peak rates, or adjusting your thermostat just one degree cooler which could save around £100 a year and swapping out inefficient appliances.
Investing in items like thermal curtains, draught excluders, and radiator reflectors, all of which are usually renter-friendly, might cost more upfront but will save money in the long run by making your energy usage more efficient.
Peake advised: “If you’re regularly topping up at the shop, it might be worth checking if you’re eligible to switch to Direct Debit instead. You’ll need a decent credit score, but paying monthly can take the stress out of budgeting and means fewer surprise trips out when the meter runs low.”