Electrical grid
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Electricity fraud in Spain
The impact of electricity fraud in Spain is greater than one might think. In 2024 alone, Endesa’s electricity distribution subsidiary, e-distribución, detected 70,981 cases of fraud, a 33% increase compared to 2023.
28% of the stolen electricity was used for illegal marijuana cultivation. This translates to an average of six plantations detected per day, more than 40 per week.
Marijuana cultivation needs a very high and constant supply of electricity. The annual illegal electricity consumption of these plantations in Spain is equivalent to the entire yearly consumption of the city of Seville. However, this is not the only source of fraud.
There are three main types of electricity fraud:
- Illegal connections: when someone taps into the electricity grid without a contract, it constitutes an illegal hookup.
- Meter tampering: altering the meter so that it records less consumption than what is actually used.
- Double tapping: creating a second unauthorised connection to bypass the meter, preventing proper billing.
Electricity fraud is not a victimless crime. It comes with serious risks such as fire hazards and electrical accidents that threaten public safety. Overloaded electrical grids can cause blackouts affecting entire neighbourhoods.
Furthermore, there is an economic damage that affects us all: the increase in the electricity bill.
How does electricity fraud impact consumer bills?
Consumers bear the financial burden of electricity fraud through higher bills.
Fraud-related energy losses are included under ‘grid losses,’ which consist of: technical losses (energy lost during electricity transmission) and non-technical losses (fraud and irregularities).
In most Western countries, the revenue collected through these charges is used to maintain and upgrade the grid.
Fraud also reduces tax revenues, such as VAT and electricity taxes, leading to higher taxes or lower public investment.
Another consequence is the indirect costs due to damage to the electrical infrastructure, especially transformation centres. Therefore, it reduces the system’s efficiency and increases maintenance costs.
When illegal connections bypass the system, the required transmission and distribution fees go unpaid. These fees are a crucial part of our bills destined for grid maintenance and improvement.
Measures to combat electricity fraud
Electricity distributors work closely with law enforcement agencies to detect and eliminate fraud. They use advanced technologies, such as AI and monitoring systems, to identify anomalies in energy consumption.
Field inspections help detect illegal connections and tampered meters.
Distributors provide secure channels for anonymous reporting of suspected fraudulent activities, contributing to mitigating the impact of these practices.
How to report an illegal connection?
If you suspect an illegal electricity hookup, take these steps: check your own installation by disconnecting your electrical devices and check if your meter continues recording consumption. If it does, fraud may be occurring.
Report it to your local electricity distributor. At e-distribución, you can report fraud through this online form, by phone (800 760 220), or via email (anomalias@enel.com).
Electricity fraud affects everyone—from higher electricity bills to safety risks, service quality issues, and lost tax revenues. Therefore, fighting fraud is a shared responsibility between electricity distributors, authorities, and citizens.
