Every Bitcoin mining firm that is looking to set up a shop in Quebec will now have to pay more for electricity, according to a new regulative approval.
It all started when the energy regulator of the Canadian province,Régie de l’énergie, gave the region’s utility firm (Hydro-Quebec) the official push to impose a deterrent tariff that forces cryptocurrency miners to pay double the rate that is levied on households and other utility customers. The new rate of electricity used for mining will be 15 cents per kilowatt-hour.
As the Montreal Gazette reports, the new rates will be applicable until regulations are introduced. They will, however, not apply to existing agreements but only affect deals that were made after June 6th, 2018. After all, the move is aimed at consistent supply, especially during peak demand.
As Régie de l’énergie wrote in a 45-page statement:
“The Régie considers that the rates and conditions … will ensure the security of electricity supply in the particular context of massive, sudden, unexpected and simultaneous demands for the use of blockchain technology, including mining cryptocurrencies,”
Several hearings for the regulations aimed at cryptocurrency mining are expected to begin next month. Currently, Quebec enjoys huge quantities of surplus electricity – which also puts it in danger of not being able to meet the needs of its regular customers during peak demand. The total electricity generating capacity of Hydro-Quebec is 37,000 megawatts.
This move has been made after a lot of Bitcoin miners trooped to Quebec – especially after China started cracking down on Bitcoin mining, forcing many players in the sector to move overseas.
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