Cryptocurrency miners based in Quebec will now be forced to pay up to almost three times the normal charges for power consumption. This is after the Canadian power distributor Hydro Quebec received numerous applications for operations of the digital currency mining. Included in the proposals related to cryptocurrency that has been submitted is one requiring crypto companies to bid for power.
Hydro Quebec had requested authority from the provincial regulator R?gie de l??nergie. The regulator has since granted approval to the power company to increase rates for the blockchain promoters as well as the miners of digital currency. It will charge the new rates until regulations for the blockchain industry have been formulated.
Triple the price
The power utility firm will now charge blockchain companies 15 cents per kilowatt. This is about triple the price the companies have been enjoying. The charges are also twice what residential power consumers pay. Existing blockchain firms consume about 120 megawatts to run their operations. However, they said companies will not be affected by the new rates. The new temporary rates will only apply in case a new firm is connected to Hydro Quebec?s network.
?Blockchain companies will be required to bid for power and spell out the jobs and investment per megawatt that they will generate,? the utility further proposed.
The new bidding price will amount to a 20% increase since the bids will now start at 1 Canadian cent ($0.0075) per kilowatt hour.
The regulator held the view that the revised rates would help safeguard the supply of electricity. This is despite any unexpected rise in demand for the crypto mining usage.
Due to the increase of crypto mining requests, hearings meant to regulate the sector are planned to commence in August. Approximately 300 requests have been put forward to the utility firm. This translates to more than 40% of the company?s generating capacity.
Quebec intends to provide new companies with 500mW in addition to the existing companies that are currently consuming 150mW. The power firm will develop a separate group of electricity consumers related to the blockchain sector. Hence, it will vet requests made by such companies since the temporary deterrent tariff came into force.