Unauthorized Electricity Consumption: When It's a Criminal Offense and How to Defend Yourself

Our law firm has successfully defended the rights of clients suspected of unauthorized electricity consumption in recent years. As part of gaining experience in this field, we have decided to share some interesting insights for those facing such charges.

💡 Important: Defending clients in cases of unauthorized electricity consumption is more complicated for lawyers unfamiliar with the subject matter because they must have at least basic technical knowledge in the field of high school physics, which is not common.

Is Unauthorized Electricity Consumption Theft?

Although we have encountered the legal myth among the general public that such conduct is not criminal, this is obviously not true. Clients often had the impression that electricity is just intangible energy, not a thing, and therefore cannot constitute theft.

However, electrical energy is defined as a thing under the Civil Code and legal protection applies to it as to other, e.g., tangible things.

How Does the Electricity Distributor Proceed When Suspicious?

In case of suspicion of unauthorized electricity consumption, the distributor usually conducts an unannounced local investigation through inspection technicians who:

1. check the connection of the main electricity meter and HDO connection
2. measure immediate electricity consumption on individual phases
3. notify the customer that they are measuring

The moment when there is a significant drop in immediate consumption, suspicion arises that the user is consuming electricity without authorization. This is usually followed by measurement with a PMC device and the matter can escalate to a house search.

Can You Defend Against Unauthorized Electricity Consumption?

Fortunately, there is a very effective defense in criminal proceedings. Since our office has always been successful in defending our clients, civil proceedings with the distributor followed, even though it was doomed to failure from the start.

The Problem with Damage Calculation

In cases of unauthorized electricity consumption, it is usually not possible to determine the exact amount that was consumed, so the law introduced the so-called penalty regulation, based on which a fictitious calculation of consumption is made according to significantly overpriced rates (without considering the distribution tariff) under the implementing Decree of the Ministry of Industry and Trade No. 359/2020 Coll., on the measurement of electricity (issued to § 51 of the Energy Act, Act No. 458/2000 Coll.).

However, case law, especially the Constitutional Court, has already expressed its opinion on the application of the penalty regulation (see e.g. judgments file nos. I. ÚS 202/06 and IV. ÚS 133/08 and resolution Pl. ÚS 29/13), and the penalty regulation should not be applied mechanically against properly raised objections by the consumer.

Penalty for Electricity Theft: Criminal Sentence vs. Civil Invoice

When dealing with unauthorized ("black") consumption of electricity, you are actually facing two parallel proceedings:

1) Criminal track – sentence and fine

If the act qualifies as theft (§ 205 of the Czech Criminal Code) or unauthorized access to the electricity grid, sentencing depends on the value of the damage:

• Damage not negligible (from CZK 10,000): up to 2 years' imprisonment, monetary fine, ban on activity.
• Larger damage (from CZK 100,000): 1 to 5 years' imprisonment.
• Significant damage (from CZK 1,000,000): 2 to 8 years' imprisonment.

The court may impose a monetary fine in daily rates, suspended sentence with probation, or (for first-time offenders with lower damage) only a reprimand. The most common sentence in routine cases is a suspended sentence plus a monetary fine of tens of thousands of CZK.

2) Civil track – the distributor's invoice

In parallel, the distributor (ČEZ, EG.D, PRE) issues an invoice for damage, calculated according to the penalty decree (Decree No. 359/2020 Coll.). In practice the amount tends to be:

• often higher than the criminal fine,
• in the range of tens of thousands to hundreds of thousands of CZK,
• not based on actual consumption but on a fictitious calculation from the connection point's rated power and duration of the unauthorized consumption.

The invoice can be challenged by formal objections raising the grounds why the penalty decree should not apply (Constitutional Court case law exists on this). Formulating these objections with the assistance of an attorney is essential – a flaw in the argument may lead the court to confirm the full fictitious amount.

Limitation Period for Unauthorized Electricity Consumption

A frequent question is whether criminal prosecution or the distributor's claim has not already become time-barred. The rules differ between the criminal and civil tracks:

Criminal limitation (§ 34 of the Criminal Code) depends on the upper limit of the sentencing range:

• Basic offense (damage CZK 10,000–100,000) – upper limit 2 years → limitation period 3 years.
• Larger damage (CZK 100,000–1,000,000) – upper limit 5 years → limitation period 5 years.
• Significant damage (from CZK 1,000,000) – upper limit 8 years → limitation period 10 years.

The limitation period is counted from the moment the unauthorized consumption ended (typically when the distributor cut off supply or replaced the meter). If criminal procedural steps are initiated during this period, the limitation is interrupted and starts running anew.

Civil limitation of the distributor's claim follows the Civil Code – the general period is 3 years from the moment the distributor learned of the damage and its amount. With unauthorized consumption claims, the exact starting moment is often disputed (discovery? first inspection? invoicing?), and a plea of limitation is a common defense argument.

Note: Criminal limitation is assessed separately from civil limitation. Civil claim being time-barred does not stop criminal prosecution – and vice versa.

In case a consumer faces suspicion of unauthorized electricity consumption, our office is ready to help them.