Crypto miners in Argentina are bracing themselves for an escalated rise in power costs, following the announcement by the Ministry of Economy of a revised list of electricity rates. As per the new norms, miners must bear a hefty cost of 17,240 Argentine pesos (approximately $63.30) per megawatt-hour (MWh), the highest level on the ministry’s scale. Comparatively, residential energy consumers have long been enjoying subsidies of up to 70% on electricity usage, with rates beginning at a meagre $11.30/MWh.
Interestingly, the move places crypto mining within the same energy price category as heavy industries, exceeding the charges levied on commercial enterprises. The altered tariffs are set to take effect from August 1 and will stay in operation till October 31, 2023, upon which they may be subject to further amendments.
Differentiated electricity rates for crypto miners have emerged as a relatively novel trend in Argentina, and have induced substantial disruption. In the past year, miners have been grappling with soaring electricity prices while the Ministry stripped off their access to subsidised power. Consequently, one MWh of electricity shot up from just $17 to nearly $48 for crypto miners. Significantly, the latest rise to above $63/MWh threatens to thwart the activities of local miners, who now face mounting economic pressures.
Earlier this year, the Argentine government announced a distinct definition of crypto mining, coinciding with a new mining policy. This policy takes note of the intensive and consistent nature of energy consumption within the crypto mining industry, and recognises the challenges it poses to the country’s power infrastructure.
Power firms in Argentina have been proactive in identifying and shutting down significant illegal crypto mining farms. However, they confessed that smaller-scale home-made operations have proven difficult to identify and regulate.
This sudden upswing in power tariffs coincides with a rise in “crypto awareness” to an impressive 75% in Argentina. Adding fuel to the contentious fire, a high-ranking lawmaker has proposed that Argentina consider the adoption of Bitcoin (BTC) instead of following through with dollarization plans. Argentines are now left to ponder: Will the hefty rise in electricity costs instigate a dip in the popularity of crypto mining, or will it merely inspire miners to seek more innovative, power-efficient mining solutions?
Source: Cryptonews
