The Russian government is preparing tough measures to regulate electricity consumption.
In Russia, it is planned to tighten control over the mining of cryptocurrencies. The Expert Council under the government proposed to conduct remote checks through meters in order to compare the declared and actual use of electricity. Shadow miners who exceed the values specified in the receipts will be fined in the amount of exceeding the permissible electricity costs, but the calculation will be made at a higher tariff as for industrial enterprises.
Now, if shadow miners consume excessive amounts of electricity, their bills are increased at tariffs for the population, which are significantly lower than those for industry. According to Dmitry Tortev from the FAS Expert Council, the introduction of a single penalty principle at the federal level will significantly facilitate the fight against violators.
The cost of electricity for citizens is limited by the state, and suppliers cover the costs by raising tariffs for businesses. Cross-subsidization amounts to about 300 billion rubles annually. For the population, electricity is on average cheaper by about 1.5 rubles per 1 kWh. Potential fines for miners can range from hundreds of thousands to millions of rubles, Tortev said.
Shadow mining, when cryptocurrency mining equipment is installed in residential premises without registering a business, leads to an overload of the power grid and interruptions in the supply of electricity. This problem is particularly acute in the south-eastern part of the United Energy System of Siberia, namely in the Irkutsk Region, Buryatia and the Trans-Baikal Territory.
For 10 months of 2022, energy consumption in the Irkutsk region increased by 13% compared to 2021 and by 36% compared to pre-crisis 2019, largely due to the mass installation of mining devices.
According to the UES System Operator, in 2023, electricity consumption in Russia amounted to 1121.6 billion kWh. Experts estimate the amount of electricity consumed for mining in 2022 at 10.8-14.1 billion kWh.
A single 100 MW data center consumes an average of 832 million kWh per year. That is, an additional increase in the capacity of data centers for mining by 4 GW will provide an increase in useful output by 33.2 billion kWh annually starting from 2026.
Deputy Head of the Ministry of Energy Pavel Snikkars said that it is necessary to raise tariffs for miners in order to encourage them to move from energy-deficient regions. Analysts note that shadow mining is unprofitable for industrial enterprises, which compensate electricity companies for reduced tariffs for the population and shadow miners.
Experts suggest introducing a separate provision in the Code of Administrative Offences prohibiting the use of electricity for purposes other than the applicable tariff. Taking into account the energy intensity of mining, a clear regulatory regulation of the supply of such facilities is necessary.
The Industrial Mining Association is positive about measures to create conditions for the development of a legal mining business in Russia, including inspections by sales companies.
In Russia, it is planned to tighten control over the mining of cryptocurrencies. The Expert Council under the government proposed to conduct remote checks through meters in order to compare the declared and actual use of electricity. Shadow miners who exceed the values specified in the receipts will be fined in the amount of exceeding the permissible electricity costs, but the calculation will be made at a higher tariff as for industrial enterprises.
Now, if shadow miners consume excessive amounts of electricity, their bills are increased at tariffs for the population, which are significantly lower than those for industry. According to Dmitry Tortev from the FAS Expert Council, the introduction of a single penalty principle at the federal level will significantly facilitate the fight against violators.
The cost of electricity for citizens is limited by the state, and suppliers cover the costs by raising tariffs for businesses. Cross-subsidization amounts to about 300 billion rubles annually. For the population, electricity is on average cheaper by about 1.5 rubles per 1 kWh. Potential fines for miners can range from hundreds of thousands to millions of rubles, Tortev said.
Shadow mining, when cryptocurrency mining equipment is installed in residential premises without registering a business, leads to an overload of the power grid and interruptions in the supply of electricity. This problem is particularly acute in the south-eastern part of the United Energy System of Siberia, namely in the Irkutsk Region, Buryatia and the Trans-Baikal Territory.
For 10 months of 2022, energy consumption in the Irkutsk region increased by 13% compared to 2021 and by 36% compared to pre-crisis 2019, largely due to the mass installation of mining devices.
According to the UES System Operator, in 2023, electricity consumption in Russia amounted to 1121.6 billion kWh. Experts estimate the amount of electricity consumed for mining in 2022 at 10.8-14.1 billion kWh.
A single 100 MW data center consumes an average of 832 million kWh per year. That is, an additional increase in the capacity of data centers for mining by 4 GW will provide an increase in useful output by 33.2 billion kWh annually starting from 2026.
Deputy Head of the Ministry of Energy Pavel Snikkars said that it is necessary to raise tariffs for miners in order to encourage them to move from energy-deficient regions. Analysts note that shadow mining is unprofitable for industrial enterprises, which compensate electricity companies for reduced tariffs for the population and shadow miners.
Experts suggest introducing a separate provision in the Code of Administrative Offences prohibiting the use of electricity for purposes other than the applicable tariff. Taking into account the energy intensity of mining, a clear regulatory regulation of the supply of such facilities is necessary.
The Industrial Mining Association is positive about measures to create conditions for the development of a legal mining business in Russia, including inspections by sales companies.
