Commercial Energy Theft: A Guide for Businesses in 2025

Businesses have suffered a hard few years, and many are still struggling to keep the lights on.

Energy plays a critical role in the daily functions of organisations. It means that in every industry, commercial energy theft is a wide-reaching issue that puts the lives of unsuspecting employees and customers in great danger.

It doesn’t matter if you run a small business or a large industrial operation, if you are an employee, supplier, or a paying customer – understanding energy theft, its dangers, how to identify it and how to stop it is crucial.

But what exactly is commercial energy theft? What are the dangers? How do you go about spotting it? And what should you do if you suspect energy theft is happening within a business?

This guide will help you navigate the complexities of commercial energy theft and energy theft prevention, to protect your own life, and the lives of people around you.

Understanding Commercial Energy Theft

On 31 March 2024, the Energy Bill Relief Scheme of 2022, which was replaced by the Energy Bills Discount Scheme in 2023, expired. With no replacement in sight, it’s left many business owners wondering how they’re going to survive.

Hopes for more support in the Spring Budget this year were dashed too, with only measures like raising the VAT threshold and reducing National Insurance being introduced instead.

The PwC UK Energy Survey 2024 highlights that 77% of surveyed businesses had to raise the prices of products and services over the last two years due to increased energy costs. 81% expect they’ll have to do so again. 71% expect high energy costs to reduce their ability to compete internationally.

Centrica Business Solutions found that 50% of businesses prioritise reducing energy costs over addressing their carbon footprint. Some businesses think that tampering with their meters is a clever way to stay afloat.

They are wrong.

Commercial energy theft occurs when businesses illegally tamper with their meters or bypass them completely, to reduce or eliminate their energy bills. It means they consume energy without it being properly measured and recorded. It causes the meter to become a ticking time-bomb.

However, business energy theft affects not only the individual business but also the broader community and economy. When it comes to business energy theft, innocent lives are always at risk.

Theft of gas increases the risk of gas leaks. If large amounts of gas build up, just one flick of a light switch can cause a dangerous explosion that can rip through the entire building.

Tampered electricity meters with loose connections can become so hot that they start fires. Interfering with the wires at the meter can also make switches or appliances ‘live’ to the touch or cause them to overheat or malfunction. It puts anyone using, or in the vicinity of these appliances at risk of shocks and severe burns. Discover terrifying real-life meter tampering stories here.

Some energy criminals may be unaware of the terrifying consequences of energy theft. Some may just not care.

One London Business owner caused an employees’ death after bypassing a meter so that their energy consumption was not recorded. He received a 4-year prison sentence and a £40,000 fine. Read the full article here.

As well as the physical dangers, commercial energy theft also undermines fair market competition, and leads to higher operational costs, distorted financial forecasts, and potential disruptions in service delivery.

Worryingly, there are increased numbers of bill payers falling victim to scams that encourage them to remove or replace their meters. The scammers charge a fee, claiming the removals will allow them to receive free energy. This is always a lie.

It’s just not worth endangering lives to save money. It’s why every employee, consumer and individual involved with a business needs to be diligent in understanding energy theft prevention and what to do in an emergency.

Common Types of Commercial Energy Theft

Restaurant Energy Theft

Commercial energy theft could be happening in your favourite restaurant. Restaurants have extremely high energy demands. So, some owners resort to meter tampering to under-report energy consumption or connect to unauthorised gas lines. Restaurant energy theft tactics turn family meals and date nights into potential death traps, that endanger employees and customers.

Takeaway Energy Theft

Takeaway outlets can have high energy demands. They often operate on tight margins, and some nights can be slow and bad for business. It makes the temptation to cut costs through commercial energy theft often too great to resist. It may only take a few minutes to pop in to grab your takeaway, but it could end in disaster.

Retail Energy Theft

Whether it’s a large chain or small corner shop, retail is a tough and highly competitive business to be in. Some business owners try to cut costs where they can through retail energy theft. Customers could be browsing for groceries, completely unaware that their lives are in danger.

Beauty Shop Energy Theft

Beauty shops and salons require a lot of energy for lighting, heating, and operating various equipment. Business energy theft in beauty shops not only artificially reduces operating costs but creates dangerous environments for employees and customers who think they’re simply treating themselves to a manicure or a new hairstyle.

Industrial Energy Theft

Industrial sites, with their extensive energy needs, are prime targets for sophisticated energy theft schemes. Industrial energy theft can include large-scale meter tampering, bypassing utility meters, or even working with scammers.

How to Spot Energy Theft in Your Workplace

Spotting energy theft at work can be challenging, but every employee needs to stay vigilant in identifying energy scams. Suspicious signs to watch out for include:

Unusual Activity: workers or contractors spending excessive time around meters or conducting unauthorised electrical or gas work.
Unexplained Equipment Failures or Damage: if there’s no plausible explanation, it could be a sign of commercial energy theft.

When you are in commercial premises, whether as an employee or a customer, there are signs to look out for, if you can see the gas or electricity meters:

Numbers not visible
Numbers running backwards
Numbers not moving
Loose wires or unusual wiring
Burn or scorch marks on the meter casing
Sparks coming from the meter or wiring
Crackling or hissing noises around the meter
Pipes that have been bypassed, look out of place, or the use of rubber tubing
The smell of gas around the meter

Learn more about the signs of energy theft here.

Energy theft prevention is everyone’s responsibility. Knowing how to spot it is the first important step in keeping yourself, your colleagues, your customers and all those nearby safe from harm.

Keep your community safe. Read more about energy theft prevention and identifying energy scams here.

Case Studies of Commercial Energy Theft

Tanning Salon Case

A new tanning salon was opened in September 2021, but the energy usage was very low, certainly not sufficient for the three sunbeds that were in use. Initially, when the meter was inspected everything appeared in order, but information was then received saying that there was an illegal connection in the street supplying the salon.

The street was dug up and the illegal supply found and removed. The salon was billed for the stolen gas worth £18,000 as well as the costs to investigate and make the supply safe.

Steps to Take if You Suspect Energy Theft

If you spot any of the signs of commercial energy theft at your workplace or a local establishment, report your suspicions immediately to Stay Energy Safe.

Businesses, employees, customers, and communities must stay vigilant in identifying energy scams. It’s essential that everyone plays their part in energy theft prevention.

Your report could save your lives.