Quebec is putting breaks on cheap energy to cryptominers after initially selling their energy at dirt cheap rates, that would make Quebec's neighbor to the East jealous.
Quebec has allowed rates of 5 cents per kw hour to be sold to energy hungry miners. Where as rates for electricity in neighbouring Ontario for local residents can creep up to 15 cents per kw hour.
Regie de l’energie has changed their tune and now upped the rates from 5 cents to 15 cents for new clients. Existing clients will enjoy their cheap rates for now. With bitcoin prices collapsing every day, it will be interesting if they could afford the increased pricing.
After searching for more clients for their cheap energy, Hydro Quebec, has found itself in a dilemma, they have found hundreds of bitcoin and crypto miners clients wanting to take all their energy after ban in Asia.
Hydro Quebec Jonathan Cote said in an interview to Globe and Mail:
“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.”
You can have access to the full documentation on how Quebec plans on tackling cryptominers in the province by following link here.
Québec energy minister Pierre Moreau said:
“The measures announced today represent a responsible, prudent and practical approach to welcome top businesses from the blockchain tech sector, to contribute to the economic development of other sectors and to create spinoffs throughout Québec, while ensuring energy supply for all Quebecers."
Economic development? Hydro-Québec commissioned the firm KPMG to analyze the economic spinoffs of the cryptocurrency mining sector. The study reveals that unless it is associated with additional activities, cryptocurrency mining does not generate many jobs.