FOMCA calls for tougher action on electricity theft amid RM4.8 billion losses

ELECTRICITY theft in Malaysia must be treated as a major economic and criminal issue, not merely a technical violation, said the Federation of Malaysian Consumers Associations (FOMCA), following revelations of RM4.8 billion in losses linked to illegal bitcoin mining activities between 2018 and mid-2024.

FOMCA’s chief executive officer, Dr T. Saravanan, called for immediate and decisive action from the government, regulators and Tenaga Nasional Berhad (TNB), including the adoption of smart technologies such as real-time monitoring and data analytics to detect unusual electricity usage.

“Enforcement efforts must be intensified, not only targeting the operators of illegal mining farms but also extending legal accountability to landlords, enablers and financiers who profit from or facilitate these activities,” he said in a statement.

Dr Saravanan stressed the need for urgent reform of existing laws to ensure penalties are proportional to the scale of the offence.

“The legal framework governing electricity theft must be urgently revised to ensure that fines are proportionate to the scale of theft, and prison sentences reflect the seriousness of these crimes,” he said.

He also proposed that Malaysia establish a regulated framework for legal cryptocurrency mining operations, including the creation of special tariffs and licensing mechanisms to control energy usage within the sector.

“By creating special tariffs and licensing systems for registered mining businesses, the country can better control energy use in this sector, monitor compliance and prevent black-market activities,” he added.

Dr Saravanan called for greater transparency in how the government and TNB are addressing the losses, emphasising the need to assure consumers they are not indirectly subsidising illegal activity through higher electricity bills.

“Public trust hinges on open communication, clear government responses and fair solutions that do not penalise honest Malaysians,” he said.

He concluded by stating that the authorities must communicate clearly and act decisively to prevent the burden of these massive losses from falling on law-abiding citizens.

The call comes a day after Deputy Minister of Energy Transition and Water Transformation, Akmal Nasrullah Mohd Nasir, revealed that electricity theft tied to illegal bitcoin mining had cost the nation RM4.8 billion since 2018. - July 18, 2025