The Russian government has given localities the authority to set regional electricity pricing for the general public, a move which would influence cryptocurrency mining at households. Discounted residential power is frequently utilized in Russian basements and car parks for generating digital currency.
Russian Territories Given Authority to Raise Residential Mining Prices
Due to a law authorizing local administrations to restrict the power provided at favorable tariffs, Russians currently mining cryptocurrency at their residence might face increased electricity bills. Local utilities had asked for jurisdiction for imposing limits for the quantity of discounted power supplied to the public at large, citing the development of cryptocurrency mining in housing neighborhoods as justification for that decision.
According to the Russian business daily Kommersant, individual users would be required to make higher payments if their electricity usage exceeds certain limits. Apart from Crimea, whose inexpensive power is currently restricted to 150 kWh monthly, other Russian areas have still not implemented other pricing structures. According to the Federal Antimonopoly Service and Ministry of Energy, the recent regulation is intended to reduce improper power usage and wouldn’t affect the majority of the users’ costs.
Russian residential energy bills are controlled by the government, who keeps costs substantially under financially justifiable rates. Companies pay greater charges as compensation for the differential in electricity pricing. Corporations are anticipated to spend roughly 240B rubles (about $3.3B) by the end of this year in funding this ‘cross-subsidization,’ according to information sourced from the Russian electricity market watchdog.
The average electricity usage per month for each residence in the Russian Federation was approximately 250 kWh, as shown in a publication in Kommersant. Roughly 40% of residential buildings’ units currently use energy above 600 kWh monthly.
Following the latest changes to a nationwide order, every other area, including occupied Crimea, would be able to implement varied power bills. The adjustments follow complaints from Irkutsk Oblast electricity suppliers and officials concerning the quickly expanding amount of cryptocurrency farms in housing structures.
Residential energy bills in Irkutsk, called Russia’s cryptocurrency mining capital, prices merely 0.86 rubles ($0.01) per kWh, compared to an average charge of 4.25 rubles (nearly $0.06) across the country. Around the early periods of December, news sources reported that a regional electricity company had brought 85 cases involving residential cryptocurrency miners in 2021.
Cryptocurrency Mining in Residential And Commercial Locations in Russia
Cryptocurrency minings is among numerous crypto-related businesses that are exempt from the legislation “On Digital Financial Assets,” that was passed in January and partly controlled the Russian cryptocurrency market. Authorities in Moscow were calling for it to be recognized as a commercial operation and taxed appropriately. It will permit companies to charge miners a higher fee for the electricity they use to create cryptocurrency. The first session of a workgroup established in the State Duma to consider legislation for mining and other areas of the cryptocurrency community was conducted recently.