Russian government allows regions to increase electricity bills for crypto miners – Mining Bitcoin News


The Moscow Federal Government has allowed regions to determine local electricity bills for local residents. This measure will affect households’ encryption mining. Russian household electricity subsidies are usually used to mint digital currency in basements and garages.

Russian regions approved to increase household mining costs

Due to reforms that allow local authorities to restrict the supply of electricity at preferential prices, Russians mining cryptocurrency at home may expect higher electricity bills. This move comes after local utility companies demanded the power to set a threshold for the amount of subsidized electricity available to ordinary people, while complaining about the spread of cryptocurrency mining in residential areas.

According to the Russian Business Daily, private customers will have to pay more for consumption that exceeds these thresholds. The new pricing scheme has not been adopted in most regions of Russia, with the exception of Crimea, where cheap electricity has been limited to 150 kWh per month. The Federal Antimonopoly Service and the Department of Energy have assured that the new policy is aimed at curbing “inappropriate energy consumption” and should not increase the spending of most consumers.

The electricity bills of Russian households are regulated by the state, making them far below the economically reasonable level. Electricity companies make up for the difference by increasing corporate rates. According to data from the Russian energy market regulator, by 2021, companies are expected to pay more than 240 billion rubles (nearly 3.3 billion US dollars) to fund this “cross subsidy”.

According to estimates quoted by Kommersant, the average monthly electricity consumption per household in the Russian Federation was about 250 kWh last year. Today, approximately 40% of households in apartment buildings consume more than 600 kWh per month.

The recent amendment to the federal government decree will provide all other regions and the annexed Crimea with the option of introducing differentiated electricity prices. These changes took place after power distribution companies and authorities in Irkutsk Oblast complained about the rapid increase in the number of encrypted farms in residential buildings.

When the average electricity price in Russia is 4.25 rubles (almost US$0.06), the cost of household electricity in Irkutsk is only 0.86 rubles (US$0.01) per kilowatt-hour. In early December, the media reported that a local power company Irkutskenergosbyt Archive There were 85 lawsuits against home miners this year.

Mining is one of several crypto-related activities that are not within the scope of the “digital financial assets” law, which in January partially regulated the crypto space in Russia.Voices among Moscow officials are getting louder make out Treat it as a business activity and tax it. This will also allow utility companies to charge miners more of the energy needed to mint digital coins.One working team Set at State Duma The first meeting was held recently to discuss the regulations of mining and other sectors in the crypto industry.

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Do you expect the Russian region to increase the price of electricity for cryptocurrency miners? Tell us in the comments section below.

Lubomir Tasef

Lubomir Tassev is a tech-savvy journalist from Eastern Europe. He likes Hitchens’ famous quote: “Being a writer is my nature, not what I do.” In addition to encryption, blockchain and financial technology, international politics and economics Are the other two sources of inspiration.

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