Russia’s Anti-Monopoly Agency Proposes Higher Electricity Rates for Home Crypto Miners – Mining Bitcoin News

Russia’s antitrust service has suggested that Russians who mint digital coins in their homes should pay more for their electricity. The proposal comes after the introduction of a bill adapted to regulate cryptocurrency mining to the Russian parliament.

Russian miners using domestic electricity should pay higher bills, says antitrust agency

Russia’s Federal Antimonopoly Service (FAS) has devised a scheme to charge amateur cryptocurrencies an increase in the fees for the electricity they use. The agency insists on its approach to solving the problem with the increase in consumption in residential areas, due in part to the growing popularity of mining, may reduce the load on the power grids.

Authorities in the Russian Federation maintain differentiated electricity tariffs depending on the state and location of consumers, explains the newspaper Rossiyskaya Gazeta in an article. Businesses subsidize household prices through their own rates, which can be up to twice the rates of the general population.

Private consumers often try to exploit their low rates to make money by feeding anything from car repair shops to wood shops, says the Energy Consumers Community Association. As a result, residential area networks are overloaded as they are not designed to cope with excessive energy use, which has also increased due to domestic mining.

The FAS now wants to introduce a threshold for electricity consumption, above which higher tariffs will be imposed. Thus, according to the antitrust service, the needs of the home will be separated from the commercial ones. The consumption of various appliances will be counted, including those with the highest energy consumption such as air conditioning units.

Each Russian region will be able to set the amount of electricity that will be supplied at preferential rates, taking into account factors such as energy consumption for heating in the cold months and the length of the heating season, the FAS said. In December, the federal government allowed regional authorities to independently determine local electricity tariffs.

Power supply networks in residential areas of many regions with historically low electricity prices, such as Irkutsk Oblast, Krasnoyarsk Krai and Dagestan, have been damaged by the spread of makeshift cryptographic mining farms that mint coins in basements and garages.

The introduction of differentiated tariffs is expected to reduce interest in mining and other ways to earn at the expense of subsidized domestic electricity. The agency hopes the new approach could also reduce production costs for companies calculated on the prices of their goods and services, eventually suppressing inflation.

The proposal comes as Russian lawmakers are reviewing a new bill on cryptocurrency mining. The legislation aims to regulate the country’s industry, which is rich in cheap energy resources and favorable weather conditions. Its competitive advantages could make Russia a world mining leader, officials acknowledged.

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What do you think about the new price of electricity that will affect cryptographic miners in Russia? Tell us in the comments section below.

Lubomir Tassev

Lubomir Tassev is a tech-savvy Eastern European journalist who likes Hitchens’ quote: “Being a writer is what I am, more than what I do.” In addition to crypto, blockchain and fintech, international politics and economics are two other sources of inspiration.

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