Energy companies in Paraguay demand higher tariffs for miners

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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.

Energy workers presented a draft decreePresident Mario Abdo's National Economic Group (ENN) has called for higher tariffs for cryptocurrency mining companies. ANDE President Félix Sosa said in an interview with a local radio station that he will ask Abdo to partially veto a recently passed bill regulating cryptocurrency mining and trading. According to Sosa, we are talking about limiting the increase in the industrial electricity tariff for miners to no more than 15%:

“We believe the cap needs to be consistent with the cost structure in order for it to make sense for the electricity supply.”

ANDE President wants mining companies tocompanies paid for electricity in advance in US dollars at the current exchange rate. According to the official, in the Alto Parana region, the illegal use of electricity by mining companies in July alone led to losses of $410,000. In total, in the first seven months of the year, losses in the Paraguayan energy industry amounted to $2.2 million. In some cases, mining companies paid from 80 to 160 times less than the amount of electricity used to mine cryptocurrency.

Chinese persecuted by the authorities (and not only)Miners have begun to view Paraguay as a country with renewable hydroelectricity reserves to launch “green mining farms.” In June, eight Chinese companies decided to move their business to Paraguay.