Russian Association of Power Suppliers Proposes Measures to Prevent Home Mining

Russian association power utilities and energy suppliers has prepared proposals to reduce amateur crypto mining using subsidized household electricity. This has been a popular source of income for many Russians. Valery Seleznev (First Deputy Chairman, Energy Committee at State Duma), the lower house, has received a letter with its recommendations.

Forklog reported that the members of the group consider the production of digital currency with cheap energy in Russian homes to be the greatest problem with mining. The members also stress how difficult it is for experts to assess the damage caused by this practice, as it is hard to determine the percentage of electricity consumed by residential areas.

Russia has been a hotspot for mining in the last year. This is especially true since China started cracking down on the sector in May 2021. Mining has become a lucrative business venture for ordinary citizens as well as businesses.

The Central Bank of Russia recently suggested to ban mining. However, there are other government institutions such as ministries and regulatory agencies that support legalization. Russian authorities could tax mining and raise electricity tariffs for mining companies by recognizing it as an entrepreneurial activity.

Home miners from energy-rich areas such as Irkutsk were blamed for power outages and damage to the grid. Electricity rates in these regions start at $0.01 perkWh. The federal government in Moscow gave permission to local authorities to set local electricity tariffs for residential areas. This is likely to result in higher bills for consumption that exceeds a certain threshold.

The association of energy suppliers suggested several measures to address the problem. It asks consumers to specify the intended use of electricity purchased and, in the event of deviation, to disconnect them from the power grid.

It also demands that internet providers share IP addresses of suspected cryptocurrency miners with power utilities. The organization calls for legal liability for violations, such as the denial of inspectors access to electricity installations that power cryptocurrency farms or the use of electricity for other than household purposes.

 

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