Quebec imposed a moratorium on launching new operations at cryptocurrency mining, in order to give officials time to develop new restrictions and the potential increase in electricity costs, according to Reuters.
In the autumn of last year the canadian province of québec came to the fore in the mining industry – in November 2017, the first reports came in that cheap electricity Canada attracts miners from all over the world. However, this Thursday, the provincial government officially ceased to approve new projects to create new rules in accordance with which mining companies will open their businesses in the region, reports the news Agency.
In addition, Hydro Quebec, the state electricity producer, hopes to limit available to the miners the power to 500 megawatts as a whole, or select only «part of the 17 000 megawatts», which previously requested that industry representatives.
The company Hydro Quebec reportedly asked the energy Board of the province to introduce new tariffs to «help maximize revenue producer of energy». This is not the first such case.
As previously reported, Hydro Quebec briefly stopped taking new customers from the industry in March, citing a large amount of energy required by the miners. Then the company released a document stating that she will not be able to meet demand, if approved each mining project, applying for a job in the province.
Under the new regulation, according to Reuters, Hydro Quebec will be able to choose the «best companies» seeking to improve their facilities in the region. This, in turn, will contribute to the growth of the provincial economy, and will not allow cost to local residents, said in the statement by the President on electric power distribution Hydro-Quebec Eric Filion (Eric Filion).
Overall, its a new decision of the provincial authorities violate earlier data miners promises. When in January of this year, official information appeared that the Quebec opens its doors to miners, David Vincent (David Vincent), commercial Director at energy company Hydro Quebec, made a bold statement. He said that «consistent pricing for a long period and the confidence that such rate is not just an attractive proposition, which may in the future increase dramatically, are a key part of a commercial proposal for mining companies.»
However, apparently, it was just a rant. It is likely that electricity prices will rise only for newly arrived companies, while those who entered into an agreement with Hydro Quebec in the first half of 2018 and earlier will pay the same rates, however, the firm did not specify its intentions. Apparently, the plan was matured the company from the beginning of this year, since shortly after the announcement of Vincent, it was reported that Hydro Quebec are unable to meet the demands of the miners.
Although, even given the troubles with the authorities of the canadian province, for the majority of miners are looking for new jurisdictions for their business, Quebec city remains one of the most interesting options. Recently, we talked about the fact that Chinese miners are experiencing difficulties when moving to countries such as Cambodia.
In such States of the Asian region electricity prices are comparable with Chinese, however, the miners are experiencing difficulties in purchasing the necessary components, and also suffer from interruptions in the supply of electricity, common in some provinces of Cambodia. Therefore, it is unlikely Quebec will face the outflow of companies from the region – the choice of miners is not great.