Russia Allows Regions To Raise Electricity Rates For Crypto Miners

Federal government officials in Moscow have allowed regions to set local electricity rates for residents, affecting crypto mining at home. The subsidized electricity for household use in Russia has commonly been utilized to mint digital currencies in garages and basements.

Russians mining cryptocurrency at home may be faced with more expensive electricity bills because of the reform that allows authorities in the region to limit the amount of electricity supplied at a lower cost. This is a response to local utilities’ requests for authorities to establish limits on the amount of electricity that is subsidized access to the public as well as expressing concern about the expansion of crypto mining within residential zones.

Russian business-oriented daily Kommersant published, private customers will be required to pay more for usage above these limits. The majority of Russian regions have yet to implement new pricing systems, however, except Crimea where electricity at a low cost is already restricted up to 150kWh per month. The Federal Antimonopoly Service and the Ministry of Energy have assured that the new scheme is designed to curb excessive energy use and will not raise costs for most consumers.

The electricity tariffs for householders in Russia are controlled by state authorities, which keeps them below the economically acceptable levels. The power utilities make up for the difference by imposing higher rates for businesses. In 2021, firms are expected to shell out more than the sum of 240 milliards of rubles (close to $3.3 billion) to pay for this cross-subsidization, according to data from Russias regulator of energy markets has revealed.

According to a report published by the Kommersant, the average monthly consumption for households within the Russian Federation was about 250 kWh. About 40% of the homes located in apartment blocks use more than 600 kWh each month.

Recent changes in a government order will give the other regions that are not annexed to Crimea with the possibility to implement different electricity tariffs. The new rules were introduced following complaints from power distributors and officials in the Irkutsk Oblast complained about the rapid growth of crypto farms located in homes.

Read Also: Pro-Bitcoin Senator Will Introduce A Comprehensive Crypto Bill In The US

Disclaimer: The information provided in this article is for informational purposes only and should not be construed as financial or investment advice. Cryptocurrency investments are subject to market risks, and individuals should seek professional advice before making any investment decisions.

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