April 1, 2023

Energy companies in Paraguay demand higher tariffs for miners

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1 min.

Energy companies in Paraguay demand higher tariffs for miners

The National Electricity Administration of Paraguay (ANDE) intends to change the country's loyal attitude towards mining and cryptocurrencies by revising the law on digital assets.

Power engineers presented a draft decree of the NationalMario Abdo’s (ENN) President Mario Abdo’s (ENN) economic group to call for higher rates for cryptocurrency mining companies. ANDE President Félix Sosa said in an interview with a local radio station that he would ask Abdo to partially veto a recently passed bill regulating the mining and trading of cryptocurrencies. According to Sosa, we are talking about limiting the increase in the industrial electricity tariff for miners by no more than 15%:

“We believe the cap needs to be in line with the cost structure in order for it to be feasible for the electricity supply.”

ANDE President Wants Mining Companiespaid for electricity in advance in US dollars at the current exchange rate. In the Alto Paraná region, the illegal use of electricity by mining companies in July alone resulted in losses of $410,000, the official said. Paraguay's energy industry lost $2.2 million in the first seven months of the year. In some cases, mining companies paid between 80 and 160 times less than they used electricity to mine cryptocurrency.

Persecuted Chinese (and not only)miners have begun to look to Paraguay as a country with renewable hydroelectricity reserves to run "green mining farms". In June, eight Chinese companies gathered to move their business to Paraguay.