This is probably very common in places with subsidized energy, and you are spot on with this:
Given the situation, (socialization of cost with privatization of gains) I don't see any problem with attempts to curb or regulate this behavior.
In my country we have cheap energy as well, and bitcoin mining is illegal, but for other reasons (we have a currency exchange control).
Hm, this is rather interesting. Doesn't sound like a regime I'd get along with personally.