Raise

Russian energy companies have expressed strong opposition to the Ministry of Energy's proposal to significantly increase <a href="https://ultramining.com/news/en/minnesota-man-faces-accusations-of-electricity-theft-for-bitcoin-mining/" rel="noopener noreferrer nofollow">electricity</a> transmission tariffs for cryptocurrency mining centers. Concerns have been raised that this move could lead to legal challenges and an increase in unpaid energy bills, according to <a href="https://www.kommersant.ru/doc/6790874?ysclid=lxvq2kxqol322940902" rel="noopener noreferrer nofollow">Kommersant</a>.
The Ministry's proposal, which aims to raise tariffs by five to ten times in energy-deficient regions, has faced numerous objections from the working group on energy regulation. Of the group’s members, ten voted against the proposal, two were in favor, and two abstained. The Ministry of Energy has not commented on the matter.
The initiative targets areas like southern <a href="https://ultramining.com/news/en/irkutsk-region-busts-1-000-illegal-crypto-miners-in-a-year-fires-a-major-concern/" rel="noopener noreferrer nofollow">Irkutsk</a> Oblast, aiming to incentivize miners to relocate to regions with surplus energy. Regional commissions are to compile a registry of affected consumers. However, the proposal has been criticized for potentially driving legitimate mining operations into the gray market and failing to clearly define what constitutes <a href="https://ultramining.com/news/en/immersion-cooling-transforms-chinas-crypto-mining-landscape/" rel="noopener noreferrer nofollow">mining equipment</a>.
Critics, including the "Community of Energy Consumers" and "Rosseti," argue that the proposal threatens the legal mining sector and could lead to an increase in debt for energy suppliers. They suggest the need for 100% prepayment and disconnection measures for mining centers running out of advance funds.
The "Association of Guaranteed Suppliers and Energy Sales Companies" estimates that the initiative could raise energy prices for mining centers eightfold. They also fear that miners may accumulate debt before relocating, exacerbating the issue of uncollectible debts.
Sergey Bezdelov, Director of the Association of Industrial Mining, called the rejection of the Ministry's proposal expected, citing it as discriminatory and harmful to <a href="https://ultramining.com/news/en/russia-s-energy-ministry-charges-forward-to-legalize-crypto-mining/" rel="noopener noreferrer nofollow">Russia</a>’s energy and competitive legislation. Meanwhile, energy experts believe that despite the criticisms, the government may still approve the proposal if deemed necessary.
The controversy underscores the broader debate over the balance between regulating cryptocurrency mining and ensuring energy system reliability in Russia.

Russian Energy Companies Criticize Proposal to Raise Electricity Rates for Crypto Miners

Ultramining_Eng

Other articles published on Jun 26, 2024

Top Crypto Gainers Today Jun 26 – Centrifuge, AIOZ Network, Telcoin, JUST

MoonBag: Leading the Best Crypto Presale in June 2024, Investors' Ultimate Choice

Blast is Live, Hits $3 Billion Cap, Airdrops 17% Supply to Stakers

HIVE Sees Revenue Growth and Expands into AI Computing in Fiscal 2024

Grab Your Chance! BlockDAG’s $2M Giveaway Outperforms As XRP And STX See Notable Gains

Brett Price Prediction: Top-Performer BRETT Surges 14%, But Experts Say Consider This New Base Me...

Join our free newsletter for daily crypto updates!