2024

Starting July 1, 2024, the <a href="https://ultramining.com/news/en/irkutsk-region-busts-1-000-illegal-crypto-miners-in-a-year-fires-a-major-concern/" rel="noopener noreferrer nofollow">Irkutsk</a> Region will adopt differentiated electricity tariffs based on consumption levels, announced Governor Igor Kobzev. This move is aimed at maintaining low <a href="https://ultramining.com/news/en/impending-bitcoin-halving-may-trigger-major-hashrate-decline-say-experts/" rel="noopener noreferrer nofollow">energy costs</a> while regulating consumption to address the local power shortages caused by intensive mining activities. The new system sets a consumption norm of 25,000 kWh per month, which is designed to protect the interests of the majority of the region's residents without compromising the area's competitive energy rates, according to <a href="https://www.interfax-russia.ru/siberia/main/irkutskaya-oblast-s-1-iyulya-vvedet-differencirovannye-energotarify-norma-sostavit-25-tys-kvt-chas-v-mesyac" rel="noopener noreferrer nofollow">Interfax-russia</a>.
This tariff restructuring follows a decision by the Federal Antimonopoly Service (FAS) to annul previous orders by the regional Tariff Service due to violations in setting the 2024 energy tariffs. The FAS highlighted excessive cross-subsidization, which breached the permissible limit by over RUB 2 billion. This issue was significant as it exceeded the calculated cross-subsidization rules set by federal regulations, leading to a lack of budgeted compensations for the discrepancies.
Prior to this adjustment, the entire population of the <a href="https://ultramining.com/news/en/irkutsk-governor-calls-for-tighter-crypto-mining-regulations-amid-tax-shortfalls-and-energy-crisis/" rel="noopener noreferrer nofollow">Irkutsk</a> Region enjoyed one of the lowest tariff rates in <a href="https://ultramining.com/news/en/russia-s-energy-ministry-charges-forward-to-legalize-crypto-mining/" rel="noopener noreferrer nofollow">Russia</a>, with city residents paying 1.42 rubles and rural residents 0.994 rubles per kilowatt-hour. However, from July 1, the rates will increase to 1.58 rubles for urban areas and 1.106 rubles for rural areas, reflecting a necessary adjustment to mitigate the energy deficiency caused by both gray and industrial mining operations.
This restructuring is critical as the Irkutsk Region has become an attractive hub for <a href="https://ultramining.com/news/en/cryptocurrency-miners-strike-gold-with-record-13-9b-net-profit/" rel="noopener noreferrer nofollow">cryptocurrency miners</a> due to its previously low electricity costs. The new differentiated tariffs are part of a broader strategy to ensure sustainable energy consumption while supporting the region's economic stability and environmental commitments.&nbsp;

Irkutsk Region Implements New Energy Tariffs to Address Mining-Driven Power Shortage

Ultramining_Eng

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