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HomeCrypto NewsPower outages in Russia's Irkutsk Region blamed on home miners

Power outages in Russia’s Irkutsk Region blamed on home miners

The problems with electricity supply in Irkutsk have been attributed to Russians who mine cryptocurrency from their homes. In the region with the lowest electricity rates, power outages are a common occurrence. Many locals have turned sub-sidized household electricity into a source for income by mining.

Electricity Consumption Rises amid the spread of home crypto mining in Irkutsk
The increasing number of outages has been a problem for power grid operators in Irkutsk. The city and region are seeing an increase in electricity consumption, which overloads the distribution system. Local officials believe this is due to cryptocurrency miners, who mine digital currencies from their basements and garages.

They are proposing a series of measures to alleviate the situation. Kommersant, a Russian business newspaper, reported that authorities want to increase the capacity of the distribution network in Irkutsk Oblast and introduce higher crypto mining tariffs. They also plan to establish special platforms for hosting their activities.

According to the publication, several parts of Irkutsk were affected by either emergency or planned outages in December. According to the newspaper, there has been an increase in pressure on the grid in residential areas since June.

“Despite the warmer November weather, the load increased almost 40% in comparison to last year. The activities of miners are responsible for the significant load on the power grids and the increasing number of outages,” explained the Irkutsk Electric Grid Company. The calculations reveal that the consumption of Irkutsk rose by 108% in the entire 2021..

IESC stressed that coin minting requires a lot of energy because the equipment is constantly in use. Engineers warn that existing electric networks are not designed to handle the “industrial” mining load. To replace fuses and to install higher-capacity power lines, the company was forced to shut off electricity in several areas.

More than 1 ,100 Cases for ‘Gray’ Crypto Mining Registered in 2021
The region’s utilities have been trying to find the mines responsible for the increase in consumption. Irkutskenergosbyt reported that 21 electricity installations in Irkutsk were found to be mining equipment.

Inspectors discovered more than 1 ,100 cases involving so-called “gray mining” in the Irkutsk Oblast of 2021.. A recent report unveiled that Irkutskenergosbyt utility has filed 85 lawsuits against people involved in home crypto mining with claims totaling 73.3 million rubles (over $980,000). It has already won nine court cases from which it expects to receive 18.7 million rubles ($250,000) in compensation.

The federal government in Moscow granted authorities in Russian regions the right to determine local electricity rates. This was done in December. This measure will likely increase the cost of amateur crypto mining. It is common to mint digital currency at home using sub-subsidized household electricity in Russia.

Irkutsk is the country’s mining capital and has the lowest rates at 0. 86 rubles ($0. 01) per Kilowatt, despite the fact that Russia’s average tariff is six times more. Officials in Moscow and other regions such as Irkutsk are calling for mining to be recognized as a business activity and to tax them. The State Duma has established a working group to discuss regulatory proposals and other crypto-related issues.

This story contains tags

Crypto, crypto farms, crypto miners, Cryptocurrencies, Cryptocurrencies, Cryptocurrencies, Cryptocurrencies, Electricity, Energy, Home Miners, IESC, Inspections, Irkutsk Oblast, Irkutsk Region, Irkutskenergosbyt, Miners, Mining, Outages, power, rates, repair, Russia, russian, tariffs, utilities, utility

Are you optimistic that Russia will soon regulate cryptocurrency mining? Will it raise electricity prices for miners? Comment below.

Lubomir Tassev

Lubomir Tassev, a journalist hailing from tech-savvy Eastern Europe, likes Hitchens’s quote: “Being an author is what I am rather than what it is.”

Image Credits: Shutterstock. Pixabay. Wiki Commons.

Disclaimer: This article is intended for informational purposes only. This article is not intended to be a solicitation or offer to buy or sell any products or services. Bitcoin.com is not a provider of investment, tax, legal or accounting advice. The author and the company are not responsible for any loss or damage caused or alleged caused by the use or reliance of any content, goods, or services in this article.

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Henry Hickshttps://nonfungibletalk.com
NFT and Crypto Enthusiast. Loves Travelling and Exploring the Metaverse!
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