Significant Financial Losses Due to Electricity Theft
The Malaysian government has revealed that its national utility provider, Tenaga Nasional Bhd (TNB), incurred significant financial losses exceeding $1 billion as a result of illegal electricity theft linked to cryptocurrency mining activities.
Extent of the Problem
According to a parliamentary statement issued by the Ministry of Energy and Water Affairs Transformation on November 18, 2020, through August of this year, TNB has identified a staggering 13,827 locations involved in illicitly accessing power for mining purposes, particularly Bitcoin mining. This unauthorized consumption of electricity has led to an estimated economic deficit of 4.6 billion Ringgit, translating to roughly $1.1 billion.
Legal Framework and Response
Despite the absence of comprehensive regulations governing cryptocurrency mining operations in Malaysia, the Electricity Supply Act firmly categorizes the manipulation of electricity meters and establishing unauthorized connections to the power grid as illegal activities.
In response to the rampant electricity theft, the Ministry of Energy has stated that TNB is collaborating with various agencies—including police, the telecommunications regulator, and the anti-corruption agency—to combat the issue.
Joint operations have resulted in the confiscation of numerous Bitcoin mining devices discovered at the sites under investigation.
