Hydro-Québec calls for "dissuasive" rates for crypto

Hydro-Québec calls for "dissuasive" rates for crypto

<![CDATA[Hydro-Québec has applied to the “Energy Constable” to apply a deterrent rate to new cryptocurrency mining projects. Provisionally set at $ 0.15 per kilowatthour (KWh), this represents an outbreak of 200% compared to the usual rate. What cool the heat. To read rare exchanges on social networks, it looks like one more nail in the coffin of Quebec actors. “The miners of Quebec live the same thing as in China. This is not yet official, but Hydro-Quebec wants to discriminate against Bitcoin entrepreneurs with rising prices making the province the worst place in Canada to establish an emerging business, once again, “says Jonathan Bertrand, a local pioneer in the industry. head of D-Central Technologies. The Québec electricity monopoly sent this week a request to the Régie de l’énergie to urgently approve “a dissuasive tariff applicable to all new subscriptions for cryptographic use applied to block chains, as well as to any substitution of use and increase of power “. Under these provisional conditions of service that the regulator must implement, Hydro-Québec claims that the energy will be billed at a price of 15 cents per kWh for all new forms of power at rates M and LG. In other words, all companies with an existing subscription, with a power already installed, or a development project already confirmed will continue to benefit from normal rates until the establishment by the Régie of the final conditions. A “necessary” evil to control demand “in the public interest”, argues the electricity distributor. By decision to be made by July 16, the energy gendarme must also approve the process of selecting cryptographic mining projects for the allocation of a dedicated block of 500 MW for a minimum duration of 5 years, as recently suggested by the Minister of Energy Pierre Moreau by unveiling an official suspension of the processing of applications for blockchain installations (earned him since the nickname “Mr. Moratorium”). Given the obligation to serve the municipal networks (Sherbrooke, Magog, etc.), Hydro-Québec also requires that their electricity consumption be “isolated and billed separately not to the LG” but according to the conditions to be set by the Régie. And this, depending on the category of user, namely the “dissuasive rate” if it is not an existing subscription or part of the dedicated block. In the long term, Quebec tariffs dedicated to mining should thus oscillate between 0.05 to 0.15 $ of KWh. “We will be submitting the details to the Régie shortly, but we would like to receive proposals from local players regarding the rates and other peculiarities of their projects,” Hydro-Québec’s community manager told us . Who are these “players”: Bitmain ( the bitcoin giant who recently courted Hydro-Québec ), Bitfury / Hut8, GMO Internet, Halong Mining? “We are talking about more than 300 companies of all sizes, but we will ask them to make their proposal, so we can not be certain at this stage of who will and who will not,” he said. answered Hydro-Québec. True to the economic analysis provided by consulting firm KPMG, the preference of Quebec energy institutions may return to players as component designers, suppliers of mining equipment, miners and pool operators. It can drastically reduce the list of candidates, is not it? “We are interested in Quebec to open our first crypto mine, but because of the uncertainty of tariff we will wait,” says a Canadian official of a big foreign player, disturbed by this unstoppable regulatory fog. At the suggested price of 15 cents, even if it remains temporary, this pricing policy pushes miners to incur losses, up to tens of thousands of dollars per MW per month. This is the magic recipe to attract in our beautiful province only the best crypto, support the Quebec authorities for months now. The future will tell us … very soon.]]>

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