SEB: Fire at Permyjaya commercial unit in Miri was caused by illegal electricity connection at cryptocurrency mining centre

 By Mohamad Ahmad Sallehuddin

KUCHING, March 11, 2022 - An illegal electricity connection by a cryptocurrency mining centre is found to  have started a recent fire at double-storey commercial unit at Permyjaya in Miri, said Sarawak Energy Berhad (SEB) today.

Picture: The burnt illegal connection at the cryptocurrency mining centre in Miri

A statement issued by SEB said the fire not only caused extensive damaged to the premises but also 48 units of cryptocurrency mining servers.

“SEB was alerted after the firefighters responded to a distress call. The fire was successfully put out after an emergency shutdown was performed to disconnect the electricity supply to the premises for safety purposes,” the statement said.

It added in a follow up investigation and site inspection, SEB’s technical team found 48 units of burnt cryptocurrency mining servers and evidence of electricity supply connected illegally with direct tapping cables bypassing the electricity meter.

The statement said preliminary investigations indicate that the fire was caused by the unsafe illegal wiring connection, pointing out 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 power theft can easily overload the electrical system capacity, increasing the risk of short circuits, appliance damage, fires and even loss of lives in addition to disrupting the stability of supply in the area,” it said.

The statement said the estimated losses to have been incurred is more than RM13,000 per month in unregistered electricity consumption from this case and a police report has been lodged over this matter.

It said the premises owner and the tenant will be called to assist in the investigation.

SEB said since 2021, there were nine  fire cases linked to cryptocurrency mining recorded in Sarawak, with eight  of them from Miri alone.

“Even though there were no fatalities in all these incidents, building owners and neighbours have incurred significant losses and property damage,” the statement said.

The statement reminded customers not to steal electricity as it is an illegal and a very dangerous act. 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.

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

“All SEB customers are reminded not to trust service providers claiming to be able to reduce electricity use or allow premises owner 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,” the statement said.