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Greek distribution operator slammed for wrongful power theft accusations

The Hellenic Distribution Network Operator (HEDNO or DEDDIE) has drawn severe criticism because of imposing fines for power theft in cases where no such wrongdoing took place.

Last year, HEDNO was asked by the government to step up its efforts to fight power theft, a major issue in the Greek market. In recent years, the phenomenon has worsened and is estimated to cost law-abiding consumers EUR 400 million per year. In 2022, 18% of the supplied energy was lost as a result of power theft or network losses in distribution. The number has remained high ever since.

However, the distribution system operator’s overzealous crews went over the top, fining consumers with thousands of euros, with little or no justification. In fact, there were cases where a drop in consumption as a result of irrelevant factors was considered power theft.

Households and businesses were obliged to pay, otherwise their supply would be cut off. Consequently, they must go to court to claim back the money, leading to a lengthy and costly process.

HEDNO fined by the regulator

The Regulatory Authority for Energy, Waste and Water (RAEWW or RAAEY) has stepped in to fix the problem. Ruling on a specific consumer’s complaint against HEDNO, it determined that the operator acted illegally and against provisions set by the Metering Code.

In fact, RAAEY accused HEDNO of enforcing power theft rules that it wanted added in the code, but which the regulator has not accepted. Based on the ruling, HEDNO was fined EUR 120,000.

It remains to be seen whether RAAEY will impose more fines, as the receiver of many such complaints. The body said it is not responsible for solving disputes between the operator and consumers. However, through the recent ruling it set a proper regulatory framework going forward.

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Greece raises fines for power theft

Power theft has become a major issue for the Greek electricity market in recent years. The government has been increasing fines for offenders.

The combined damage from power theft and network losses in distribution amounted to EUR 100 million per month in 2022, with 18% of the supplied energy being lost as a result of power theft or network losses in distribution.

It compared to an average loss of 8% in the European Union, meaning that lawful Greek consumers took a heavy burden through their bills.

Suppliers: HEDNO must shoulder power theft cost

For 2025, the Hellenic Electricity Distribution Operator (HEDNO or DEDDIE) estimates that losses will reach 11.08%. However, actual ones are believed to be much higher, as the initial numbers for previous years had to be revised retroactively.

Electricity suppliers have warned of severe consequences for the entire market if the problem is not solved. The Hellenic Association of Energy Suppliers (ESPEN) has asked for HEDNO to shoulder the initial cost of power theft, instead of them, to be motivated to reduce it.

Smart meters and fines to provide solution

In order to address power theft, the Ministry of Environment and Energy lifted fines a few months ago. Instead of 70%, offenders pay 100% more than the reference price for their category. The baseline is an average of the previous six months. Vulnerable consumers are fined 50% more than the reference price.

Based on the last update by the Greek Regulatory Authority for Energy, Waste and Water (RAEWW or RAAEY), an offender with a household connection will pay 49.45 eurocents per kilowatt-hour, up from 47.22 eurocents, while the tariff for businesses is 56.42 eurocents. It rose from 54.21 eurocents per kilowatt-hour.

The levels are revised every six months, taking into account the total cost of supply for each category, including taxes and network charges.

The ministry also counts on smart meters, since they significantly reduce opportunities for power theft. Greece has lagged behind all other European countries in smart meters. HEDNO finally began mass installation this year, expected to reach one million devices annually from 2026 onwards.

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Alarming rise in unpaid bills from electricity consumers in Greece

A steep rise in arrears was recorded last year in the Greek electricity supply market.

According to the latest report from the Regulatory Authority for Energy, Waste and Water (RAAEY or RAEWW), total debt for electricity rose by EUR 1 billion to EUR 3.4 billion in 2024.

It occurred despite a 10% reduction in retail electricity prices last year in the country.

Out of the total sum, existing customers owe EUR 1.74 billion to their suppliers. Another EUR 1.65 billion is debt by customers that have switched suppliers, leaving unpaid bills behind.

As for the EUR 1 billion of new debt, consumers in the mid-voltage account for EUR 400 million. They are large businesses and small industries. Another EUR 440 million is owed by various water utilities.

In December 2024, the Ministry of Environment and Energy passed a regulation subsidizing water utilities for EUR 200 million of their total debt. It means actual arrears in the segment were smaller, at EUR 240 million, but still sizeable.

Measures to reduce power theft

On top of increasing debt, the Greek market is also faced with a rise in electricity theft. In recent years, the phenomenon has worsened and is estimated to cost law-abiding consumers EUR 400 million per year.

The government and the regulator recently enacted strict fines to reduce theft. Offenders pay more than 100% over the normal power price for stolen quantities. The gradual installation of smart meters starting this year is also expected to help.

Suppliers warn of consequences

Power utilities must handle all the said liabilities. The Greek Energy Suppliers Association (ESPEN) has said that the issues indirectly increase power prices, as companies need to balance their budget through additional hedging and careful positioning.

ESPEN: Suffocating pressure as a result of high arrears

“The accumulation of large arrears causes suffocating pressure to the supply sector, raising prices and leading to negative effects for consumers,” it said.

Furthermore, suppliers asked the Hellenic Electricity Distribution Network Operator (HEDNO or DEDDIE) to waste no time in disconnecting consumers who owe money, in line with guidelines from the network code.