Electricity theft has risen by over 75% in the UK since 2012. This raises many concerns about its causes and consequences. One of the main reasons is the proliferation of cryptocurrency mining. Indeed, this is an energy-intensive activity requiring a lot of electricity to power specialized equipment. This phenomenon is costly for electricity suppliers, and leads to more serious problems. It can lead to fires and accidents caused by overheated equipment.

The impact of the COVID-19 pandemic on increased electricity theft

According to a recent BBC investigation, the expansion of electricity theft was particularly noticeable after the first wave of the COVID-19 pandemic. In the West Midlands, police saw a dramatic increase in thefts. Hertfordshire recorded a decrease of 69%. Electricity theft linked to cryptocurrency mining is therefore becoming a global problem.

Strict penalties for electricity theft

In the UK, current legislation provides for severe penalties for electricity theft, including:

• Unlimited fines
• Prison sentences of up to five years

The problem isn’t confined to the UK: countries such as Malaysia and Venezuela are also affected by cases of power theft. In the majority, those responsible are frequently cryptocurrency miners. More recently, it was discovered that inmates in Venezuela were using electricity from their prisons. They power Bitcoin mining operations.

Solving the problem: the need for international cooperation

Close cooperation between governments, electricity providers and cryptocurrency industry stakeholders is needed. Measures that could be considered include:

• Strengthening regulation and oversight of the cryptocurrency mining sector
• Set up information and awareness campaigns on the risks associated with electricity theft and its impact on public safety.
• Develop and promote the use of energy-efficient equipment to limit the appeal of electricity theft.
• Supporting research and innovation in the renewable energies sector to reduce dependence on conventional energy sources

Conclusion

Bitcoin mining appears to be a key factor behind the upsurge in electricity theft in the UK. The relevant authorities and industry players need to put in place effective measures to limit this harmful phenomenon. Such cooperation will help protect the UK electricity system. As well as ensuring greater public safety, while promoting a more responsible and sustainable development of the cryptocurrency economy.