The federal government in Moscow has permitted regions to determine local electricity tariffs for the population, a measure that will affect crypto mining at homes. Subsidized household electricity in Russia is often used to mint digital currencies in basements and garages.
Regions in Russia Granted Permission to Increase Costs for Home Mining
Russians mining cryptocurrencies at their homes may expect higher electricity bills as a result of a reform allowing regional authorities to limit the electrical energy supplied at preferential rates. The move comes after local utilities requested powers to set thresholds for the amount of subsidized electricity available to the general population while complaining about the spread of crypto mining in residential areas.
Private customers will have to pay more for consumption exceeding these thresholds, the Russian business daily Kommersant reported. Most Russian regions are yet to adopt new pricing schemes, with the exception of Crimea where cheap electricity is already limited to 150 kWh per month. The Federal Antimonopoly Service and the Ministry of Energy have assured that the new policy is aimed at curbing “inappropriate energy consumption” and should not increase expenses for most consumers.
Electricity tariffs for households in Russia are regulated by the state, which maintains them well below economically justified levels. Power utilities compensate for the difference through higher rates for businesses. In 2021, companies are expected to pay over 240 billion rubles (close to $3.3 billion) to finance this ‘cross-subsidization,’ data from Russia’s energy markets regulator has indicated.