Crypto mining draws too much power, causing blackouts at Jalan Jee Foh, Miri

Sarawak Energy’s technical team and the police gaining access to the suspicious premises following an outage in the area.
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MIRI, April 26: An illegal cryptocurrency mining operation using 30 units of mining rigs and other equipment had consumed so much power from the electricity system that it caused blackouts at Jalan Jee Foh area here recently.

Sarawak Energy and the police uncovered the electricity theft activities at a residential unit located at Jalan Jee Foh following an outage report in the area.

In a media release today, Sarawak Energy reported that the cause of the outage was a burnt cable due to system overload, and the situation was unusual as the systems are set to cater for the area’s load demand.

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Further investigation found that one of the houses in the area was consuming an unusually high amount of electricity, thus raising suspicions of electricity theft. Sarawak Energy immediately alerted the police for a joint inspection.

During the inspection, Sarawak Energy’s technical team also found direct tapping cables connected directly to the servers, bypassing the electricity meter. The electricity meter was also found tampered with shunting wires and magnets attached.

All cryptocurrency mining rigs, equipment, direct tapping cables and electricity meter were dismantled and seized by the police as evidence of electricity theft.

The landlord was also called to witness the seizure of items. The premises are currently rented out to a tenant with the electricity account still maintained under the landlord’s name.

A photo collage shows the direct tapping cables used to steal electricity (top left), cryptocurrency mining servers found (right) and the mining servers seized (bottom left).

Sarawak Energy warned that cryptocurrency mining servers are energy-intensive machines operating 24 hours daily, often requiring cooling units to avoid them from overheating. Non-standard fuses and illegal wiring connections commonly used in electricity theft can easily overload the electrical system capacity, increasing the risk of short circuits, damaging appliances, causing fires and even loss of lives.

Sarawak Energy is estimated to have incurred losses of RM11,400 per month or RM410,400 over three years in unregistered electricity consumption in this particular case.

Billing records also disclosed that the tenant was paying an unreasonably low electricity bill of RM 50-60 per month as most of the consumed electricity was unrecorded. A police report was lodged and all parties, including the premises owner will be called to assist in the investigation.

Sarawak Energy emphasised that electricity theft is a criminal offence under Section 33(5) of the Electricity Ordinance, which carries a penalty of up to RM100,000 and/or five years jail if found guilty.

The utility company reminds customers that tampering with wires to under-record electricity consumption is both illegal and dangerous. In cases where electricity is stolen for energy intensive activities such as cryptocurrency mining, it can also lead to outages in the surrounding areas, causing unnecessary inconvenience to neighbours.

Together with the Ministry of Utility and Telecommunication (MUT) and the police, Sarawak Energy will continue to track down electricity thieves that steal electricity to maximise their profits at the expense of public safety.

Members of the public are reminded not to trust service providers claiming to be able to reduce electricity use or allow premises owners to enjoy unlimited usage of electricity through meter tampering.

Meter inspection teams are trained to detect various electricity theft methods, including tampered meters, fake electricity meter covers and underground direct tapping as part of Sarawak Energy’s efforts to curb power theft.

Landlords are also advised to conduct background checks on potential tenants, be mindful and alert of their activities to avoid being implicated in electricity theft crimes committed at the rented premises.

To report any suspicious activities related to electricity theft and service providers claiming to be able to reduce electricity use, members of the public can contact Sarawak Energy’s Customer Care Centre at 1300-88-3111 or email at customercare@sarawakenergy.com. Rest assured that all information received will be kept strictly confidential. — DayakDaily

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