Despite the fact that Canada recently was a very friendly country to host the cryptocurrency mining farms, it seems that this trend is beginning to change.
The regulator of the province of Quebec allowed the municipal energy providers to increase electricity prices for companies involved in mining Bitcoins. Some of the utilities have announced their intention to raise the rates of payments for the electric power by 300%, which can make the mining process financially unprofitable.
A big change is coming?
Last week it was announced that the energy regulator in Quebec not too happy about the huge influx cryptomanager companies. Although the province has no shortage of renewable energy sources, the growing concern that a growing number of mining farms in the region will exert a strong pressure on the energy system of the region.
This question is not only relevant for Quebec, as in other regions around the world expressed similar concerns over the last few months. Given this difficult situation, the regulator has allowed Hydro-Quebec to increase its electricity prices. In particular, the company can now charge up to 15 cents per kWh with representatives of the mining industry, although this solution does not affect all other industries in the region.
This is not a positive change for members of cryptotanshinone, but in the short term does not cause serious problems. However, if the trend continues, it will put under question the economic feasibility of the mining farms.
Official data from Hydro-Quebec has not been received
Although Hydro-Quebec has not officially confirmed the increase in tariffs, there is no guarantee that it will not do so in the near future. Now working in the Quebec mining companies pay a maximum of 5 cents per kWh Increase in electricity costs 300% will lead to the fact that mining Bitcoin and various altcoins will become less profitable. It is strange that the decision published at a time when Hydro-Quebec has done everything possible to attract more mining companies for the last few months. It turns out that success in attracting new investments eventually hurt the company because it could not provide the increased demand for electricity.
Perhaps this price increase may be a temporary measure. Currently, Hydro-Quebec submits an application to the regulatory authority for the selection of the mining companies, which will be reserved 500 mW at the old prices and this limit can be increased.
Now Hydro-Quebec is interested in finding the right electricity prices that would satisfy all parties. This is much easier said than done, so a temporary price change is quite real. In addition, the mining industry has created new jobs in the region, and attracted investment, which is very important for Quebec. It is expected that the new tariff will be announced in the coming weeks, though official statements on the matter there.
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