RAE, the Regulatory Authority for Energy, has proposed financial incentives for distribution network operator DEDDIE/HEDNO as a means of clamping down on electricity theft.

The regulatory authority estimates the annual cost of electricity theft at 139 million euros, based on data concerning 2018, or 4.1 percent of the grid electricity inflow total.

According to the data, electricity thefts are stealing electricity amounts of approximately 1.7 TWh per year, whose resulting cost is burdening consumers.

Adoption of the RAE proposal through its incorporation into a new regulatory framework would offer the operator greater incentive to counter electricity theft, the authority believes.

RAE forwarded its proposal as part of current consultation on a new formula for DEDDIE/HEDNO’s revenues between 2021 and 2024.

Power utility PPC’s administration has requested a new regulatory framework for the distribution operator, a PPC-owned subsidiary, ahead of its privatization to offer investors a 49 percent stake.

A new regulatory framework, seen as promising security for investors, would complete DEDDIE/HEDNO’s business plan for 2020-2028.