Yes! You got it right!! Quebec has threefold its power prices for crypto miners until it figures out how to deal with increasing demand of electricity. And to fulfill the obligations to supply power.
Quebec’s Electricity is prohibitively expensive
The province of Quebec regulator Regie de l’energie authorized value Hydro-Quebec to charge 15 cents per kilowatt hour to firms related to blockchain. However, this temporary price hikes are not for existing clients and their operations whereas the price threefold only for new comers.
In order to soak up excessive energy from dams north of the region, Hydro-Quebec itself found with several requests to exceed its short and medium term capacity. Moreover, the Quebec provides the lowest price rates in North American and now it wants to set a particular rate for mining industries due to peak winter demand.
Jonathan Cote, Hydro-Quebec spokesman said;
“We don’t want to send a message to the market that this is the price for cryptocurrencies in Quebec. It’s more that requests are suspended until we have the proper framework determining conditions for that market”.
Under Canadian Province, Hydro-Quebec utility claims regulators to propose a selection process. Since it is for the blockchain companies in which it will allocate 500 megawatts.
However, the selection process will allow Hydro-Quebec to know industry’s fair price, its investments and jobs applicants, explains Cote. Further, the temporary pricing hike is expecting for several weeks, till the regulator sets a tax which will be applicable to all users.
Earlier, On June 07, 2018, Quebec announced to suspend the mining of new cryptocurrencies. Hydro Quebec is an energy management sector of Quebec which continuously supplies power to all other provinces. Following with the government decision, on the same day, Canada’s Quebec region announced that it will not approve any cryptocurrency mining projects, until it sets new regulations on their operations.