Home cryptocurency Quebec hikes Electricity price for Crypto miners to pay x3

Quebec hikes Electricity price for Crypto miners to pay x3

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An eastern province in Canada called Quebec once offered one of the lowest power rates in North America.

However, the eastern province of canada has now decided to increase electricity rate in the region. The decision to increase electricity rate was because of the high usage of electricity by cryptocurrency miners.

The utility has been courting cryptocurrency miners for months to use its surplus electricity. However, due to an overwhelming number of requests for crypto mining operations, the province has decided that it “will make electricity prohibitively expensive for cryptocurrency miners until it figures out how to deal with a surge in demand from the energy-hungry industry,” Bloomberg reported this week, adding:

Provincial regulator Regie de l’energie authorized utility Hydro-Quebec to charge 15 cents per kilowatt hour to blockchain companies, about three times the price they have enjoyed up to now. The temporary pricing doesn’t apply to existing clients and their operations, which total about 120 megawatts.”

“Blockchain companies will be required to bid for power and spell out the jobs and investment per megawatt that they will generate,” the utility further proposed. “The starting bid is 1 Canadian cent ($0.0075) per kilowatt hour above the rate the industry had previously enjoyed — roughly a 20 percent increase.”

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According to Jonathan Cote, a spokesman for the utility, he said: “We don’t want to send a message to the market that this is the price for cryptocurrencies in Quebec…It’s more that requests are suspended until we have the proper framework determining conditions for that market.”

Jonathan statement was due to the high demand of cryptocurrency miners flooding the Canadian eastern province because of electricity.

However, according to a news outlet,“The temporary price is expected to be in place for several weeks until the regulator sets a tariff that will then be applicable to all,”

Do you think this increase by hydro-Quebec is really necessary?

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