Malaysian utility companies are pushing back against Bitcoin mining operations over claims of electricity theft.
Tariff Proposed To Curb Electricity Loss
A utility company in Malaysia wants a special tariff on Bitcoin miners to counter the loss of funds due to energy-heavy mining operations. Tenaga Nasional Berhad (TNB), a local utility regulatory, has pointed out the increasingly costly issue of electricity theft occurring in the country due to the growing number of bitcoin mining operations. The regulatory body also proposed that all bitcoin miners in the country register for a legal electricity supply license.
Electricity Theft Soars
TNB has experienced a sharp increase in electricity being siphoned off illegally to power crypto mining operations since 2018. Since bitcoin mining is not illegal in the country, miners have doubled down, often resorting to unlawful means to source the high load of electricity needed for mining. Modifying a meter installation, bypassing the meter entirely, or creating an illegal connection are some of the illicit means that certain miners are adopting to steal electricity. According to Malaysian Anti-Corruption Commission (MACC) Commissioner Tan Sri Azam Baki, from 610 cases of electricity theft in 2018, the number has soared to 7209 in 2021, resulting in losses of over $500 million.
The company’s president and CEO, Baharin Din said in an interview,
“The irresponsible perpetrators are doing it at the expense of the security and reliability of supply for the public at large…In addition, the (electricity) volume these illegal miners have been tapping was also way too high and detrimental to everyone.”
Malaysian Police Shuts Down Illegal Operations
TNB has joined forces with Malaysia’s anti-graft agency, the police, the Energy Commission, and the local councils to apprehend power grifters to end electricity theft. The joint operation has resulted in the arrests of over 12 suspects over charges of electricity theft.
South Klang OCPD Asst Commissioner Cha Hoong Fong said that raids were carried out on three premises in Bandar Puteri and Bayu Perdana, resulting in the arrests of 12 men and seizing RM65,000 worth of cryptocurrency mining machines.
Smart Tech To The Rescue
Pestech International Bhd, which is another Malaysian electrical power technology company believes that the use of smart technology can introduce effective roadblocks in electricity theft in the country. The managing director and CEO of the company stated,
“Implementation of the likes of smart metering, meter data management systems, analytic software, and digital power quality products will greatly enhance the availability of critical power demand and supply information. That may give the utility such up-to-date data for greater monitoring, planning, and control over the entire eco-system — which includes prevention of power theft.”
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
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