The growing threat of energy theft amid rise in crypto mining

• 2 years ago (2022-02-13)
• Junior Isles

Africa 303 Asia 850 Australasia 51 Biomass 8 Climate change 20 Coal 275 Cogeneration 1 Concentrating solar 5 Cyber security 8 Decarbonisation 1 Decentralised energy 5 Demand side management 2 Demand side response 2 Digitalisation 10 Distributed energy 10 Distribution 108 Electric vehicles EVs 4 Emissions 58 Energy management 1 Equipment 2 Europe 1061 Gas 372 Gas engine plant 60 Gas fuel 1 Horizon 2 Hydroelectric 17 Hydrogen 53 Hydropower 112 Latin America 76 Maintenance 3 Marine 1 Metering 2 microgrid 5 Middle East 312 North America 998 Nuclear 640 Offshore wind 119 Oil 17 Operations 4 Policy 8 Regulations 3 Renewables 752 smart grid 2 Solar 245 Storage 37 substation 8 Tepco 2 Tidal 2 Toshiba 4 Transmission 181 US Senate Washington 4 Wind 239

---

Lloyd Birkhead, Group Managing Director at Grosvenor Services Group , part of Echo Managed Services

The popularity of cryptocurrency mining is on the rise as the earning potential of large-scale mining operations for bitcoin and other emerging digital currencies becomes more widely known. Briefly, crypto mining means creating new currency by solving a computational puzzle. The process may sound simple, but mining operations have become increasingly sophisticated in recent years as miners use more complex machinery to speed things up.

On the downside, however, crypto mining is becoming more widely associated with the criminal act of meter tampering because of the high levels of energy used to power mining equipment. According to Cambridge University’s Bitcoin Electricity Consumption Index , bitcoin mining alone consumes 133.68 terawatt hours of electricity a year which has led some of those involved in the practice to search for ways to bypass electricity meters.

European governments are becoming aware of this activity and seeking to ban the energy intensive crypto mining. Recently , Swedish authorities have called on the European Union to ban crypto mining as they feel it is threatening their ability to meet Paris Climate Agreement obligations; between April and August 2021, the energy consumption of bitcoin mining was equivalent to usage by 200,000 homes in Sweden.

A recent case in Leicestershire has also highlighted the increase of energy theft in the UK, as a prolific miner was jailed for stealing electricity worth over £32,000 from British Gas. This case is, however, just the tip of the iceberg. Not only does meter cheating cost suppliers and customers an estimated £440 million every year in the UK, it also raises serious safety concerns such as fires which can be caused by the practice of energy theft.

Despite an increasing incidence of energy theft in the UK, there is a worryingly low awareness of it and the dramatic implications that can follow. It seems that in spite of efforts by energy providers to raise awareness of energy theft and reduce the rate of increase in the practice, Grosvenor found that only 39% of people are aware of the safety risks it poses. By working alongside experts such as Grosvenor Services, energy companies could share information about the implications of energy theft with their customers, along with the importance of spotting tampering, and how to report it.

Recognising the signs of theft

Only one in four people (25%) feel confident in their ability to spot the telltale signs of meter tampering which means many instances go unnoticed. Sharing this knowledge with customers could stimulate greater public interest in how they can support efforts to prevent energy theft which could lead to energy providers seeing an increase the number of tip-offs and, ultimately, a reduction in the spiraling costs which then have to be absorbed by the industry and the customer.

Here are some of the most common signs of tampering that customers could be made aware of:

1. Extra wires attached in or around the meter.
2. No credit available, but energy supply still on.
3. No casing or damage to meter casing.
4. Rubber tube where pipes should be.
5. No visible dial.
6. Melted meter casing or burn marks on the casing.
7. Back to front meter.

Taking the message further to landlords and housing associations, for instance, could provide an additional layer of defence in the fight against this “invisible” crime as they would be more likely to spot energy theft during visits to or inspections of their properties.

Converting the non-reporters

Despite 92% of the public acknowledging that energy theft is morally wrong, only just over half (54%) would report a known instance without question. This is largely due to many people worrying about the implications of reporting a crime.

Due to the reluctance to report a neighbour or a tenant, anonymity is key to increasing reporting rates. Crimestoppers ‘ Stay Energy Safe’ service allows people to report energy theft crimes anonymously. This is another key piece of information that could be easily shared with customers, assuring them that reporting the crime is quick, easy, and confidential.

Swift and efficient detection is key

With ongoing sector pressures such as rising bills and staff shortages associated with Covid-19, it’s worth considering all avenues for swift detection. Although technical resource is necessary to make a tampered meter safe, it is also worth considering the other issues surrounding a tamper.

Grosvenor estimates that up to 75% of visits could be handled by non-technical resources such as customer engagement or field collection specialists to deal with back billing, debt collection and managing potential conflict. Resolving an issue quickly will increase people’s understanding of the importance of detecting energy theft, therefore encouraging more people to report suspected cases.

Crypto mining in the UK is showing no sign of slowing down despite other countries calling for it to be banned. Whilst mining is taking place in the UK, every effort should be made to raise awareness of the potential for energy theft to be taking place alongside it. By working with the public, energy companies could equip homeowners, tenants, landlords and housing associations with the knowledge they need to recognize the signs of energy theft and meter tampering, and the confidence to report them. Any effective strategy to reduce energy theft associated with crypto mining will be greatly improved by building public awareness and support.