Cryptocurrency miners might be disconnected for up to 500 hours per year in Russia, according to a proposal supported by the State Duma Energy Committee to tackle the energy deficit in some regions. The initiative would be an alternative to introducing special tariffs directed to miners that would increase power expenses by up to five times.
Russia Considers Disconnecting Cryptocurrency Miners for up to 500 Hours per Year
Russia is considering the application of a reform that would disconnect cryptocurrency miners depending on energy availability. According to Izvestia, the proposal, supported by the State Duma Energy Committee based on a study by the Higher School of Economics, would classify miners in a new power supply reliability group, subject to disconnection.
While households are part of a power reliability group that can just be taken off the grid for 72 hours per year, miners would be subject to disconnection for up to 500 hours per year (almost 21 days) to tackle the power deficit some regions of the country face.
The proposal, still being studied, would serve as an alternative to the establishment of higher power tariffs for cryptocurrency mining activities being drafted by the Ministry of Energy.
These plans come to tackle the problems in some parts of the Irkutsk region, which is facing an energy shortage due to the cryptocurrency mining activity rising and benefiting from the lowest electricity prices in the world.
Nonetheless, raising power tariffs might affect this mining boom. Oleg Ogienko, director of government relations at Bitriver, stated that if this comes to fruition, mining companies will start distributing their activities to residential areas, going to a gray zone, or just moving their operations elsewhere.
Alexey Tarapovsky, founder of Anderida Financial Group, criticized the cryptocurrency mining-specific tariff raise. He explained:
Increasing the cost only for mining can be regarded as tariff discrimination and will lead to an imbalance. Many enterprises and businesses consume similar amounts of energy.
What do you think about the measures proposed to tackle the energy problem in some regions of Russia? Tell us in the comments section below.
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