Power theft soars 300% as illegal mining booms
Energy Commission (ST) Johor regional director Nazlin Alim Sadikhi checking on the cryptocurrency mining machines during the raid in Iskandar Puteri on Aug 28.
PETALING JAYA: The global transaction of cryptocurrency has led to a rise in illegal mining, causing a nearly 300% jump in electricity thefts between 2018 and 2024 in Malaysia, reveals Tenaga Nasional Berhad (TNB).
The cases were detected through TNB's joint operations with the Energy Commission, the police, the Malaysian Anti-Corruption Commission and local councils.
'Joint operations and nationwide raids have successfully shut down illegal mining setups, contributing to an increase in detected cases from 610 in 2018 to 2,397 in 2024.
'These enforcement actions have safeguarded the stability of the power grid,' TNB said in a statement to The Star.
Between January 2020 and December 2024, TNB said the average number of crypto-related electricity theft cases stood at 2,303 per year.
ALSO READ: Don't let power thieves profit
'For the same period, the average number of complaints related to cryptocurrency was 1,699, with an average of 340 per month.
'The number of complaints reflects increasing public awareness of reporting on illicit crypto mining activities,' it added.
Under the Electricity Supply Act, anyone who tampers with or alters any electrical installation is liable to a fine of up to RM1mil, imprisonment for up to 10 years, or both.
Offenders could also be charged with theft or mischief under Sections 379 and 427 of the Penal Code.
Among the mechanisms utilised to detect suspicious excessive usage of electricity were through continuous consumption patterns analysis.
'Additionally, we work closely with the relevant authorities and stakeholders to uphold fair and sustainable electricity usage, therefore ensuring reliability for all customers,' it added.
To enhance its strategies in combatting illegal crypto mining, TNB had expanded the deployment of its smart meter which could improve detection of electricity theft and enable efficient monitoring.
The smart meter is a device that records the daily electricity usage and communicates this information to TNB via radio-frequency waves for monitoring and billing.
TNB has also proposed stricter legal enforcement under the Electricity Supply Act while employing artificial intelligence and predictive analytics to further improve detection and flagging of suspicious consumption of electricity among users.
There have been a number of reports about cases of illegal electricity connections.
In January, news emerged that about 60 house and shop owners in Perak were saddled with electricity bills ranging from RM30,000 to RM1.2mil due to illegal electricity connections by their tenants who engaged in cryptocurrency mining.
On April 30, police dismantled a syndicate on April 30 for stealing electricity for illegal bitcoin mining in Hulu Terengganu and Marang in Terengganu.
Amid the global digital economy, Malaysia has the potential to be a key hub for blockchain technology and digital assets and use of technologies like tokenisation, stablecoins and cryptocurrencies.
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