In a project called “Decrete Project”, the National Power Administration of Paraguay proposed setting a mining fee to cryptocurrency miners. The organization suffered huge losses and has decided to stop supplying electricity to certain mining operations.
National Power Administration To Change Power Billing Structure For Mining Operations In Paraguay
A new method of charging cryptocurrency companies to use electricity in Paraguay’s mining operations is being proposed by the National Power Administration. A new proposal has been submitted by the company to the National Power Administration. It would allow the payment of these services in advance, in U.S. Dollars and include an annual adjustment. These activities would be billed to a separate billing group.
The head of the East Regional Management Division, Alfredo Argüello, stated that while inspecting different cryptocurrency mining operations, the group was able to detect irregularities in some of them that led to the loss of more than $400,000 monthly. Some of these irregularities included direct connections, bypass connections, and modified power meters, Argüello informed.
As a result of this, the company is stopping the power supply to these companies until a new power billing structure is approved for these entities, an issue that’s already being discussed in the Paraguayan senate.
Laws on Cryptocurrency are Ready
Due to low electricity prices, the cryptocurrency mining industry in Paraguay is experiencing a boom. After the Chinese mining ban in China, many miners had to flee the country in search of new territories. Many have indicated their interest in Paraguay.
In July, the Senate approved a bill that will provide clarity for these operations. Paraguayan President is yet to sign the bill. The law stipulates that mining operations’ energy will be subsidised, however, it will be at a 15% higher rate than the current rates for other industries.
Felix Sosa (president of the National Power Administration) stated that this was the reason:
We believe it must have a cost structure that makes it financially viable to install electrical energy supplies.
Sosa indicated that he will also propose a partial repeal of the bill, citing its proposals regarding power billing for these companies.
Let us know your thoughts on the proposal for the National Power Administration of Paraguay. Leave a comment below.
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