A middle-aged couple renting out their shophouse for RM1,000 a month were stunned after receiving a demand letter from Sarawak Energy for RM280,000 in unpaid electricity charges. They later discovered that their tenant had never installed an electricity meter.
Sarawak United People’s Party (SUPP) Dudong branch chairman Wong Ching Yong said the couple sought his assistance after receiving the notice. Following their appeal, Sarawak Energy agreed to reduce the outstanding amount to approximately RM98,000 and allowed repayment in instalments. The couple had signed a tenancy agreement in January 2024, stating the premises would be used as a storage facility.
Wong explained that in August 2025, the property owners were informed that the arrears were caused by direct electricity tapping by the tenant, who had not installed a meter. Further investigations revealed that the tenant company had illegally connected cables from public power lines. The tenant is suspected of running cryptocurrency mining operations, which are known to consume large amounts of electricity.
Lawyers informed the couple that Sarawak Energy acted under Section 29(2) of the Sarawak Electricity Ordinance, which allows the utility provider to disconnect power if illegal use or tampering is detected. Under Section 33(5), anyone who dishonestly abstracts or tampers with electricity may be fined up to RM200,000, imprisoned for up to five years, or both.
Wong advised property owners to be cautious when renting out their premises by conducting thorough background checks, asking detailed questions about planned activities, and conducting unannounced site visits to ensure tenants are operating legally. He stressed that tenancy agreements should be drafted by lawyers familiar with the Sarawak Electricity Ordinance.
He said that while landlords might consider legal action against Sarawak Energy for imposing the heavy penalties, legal advice suggests that the utility acted within its rights under the ordinance. Although property owners have the constitutional right to take legal action, doing so would present significant challenges. Wong added that commercial tenants should apply for their own electricity meters instead of registering under the landlord’s name.
