[2018-07-18] Québec Charging Cryptocurrency Miners Double for Electricity

[limek]

The Canadian province of Québec has been given permission to charge cryptocurrency miners higher electricity rates than those charged to residential customers.

Canada has never been one to shy away from their interest in cryptocurrencies. They are also using blockchain technology to streamline certain air travel procedures and have given the go-ahead for a blockchain exchange-traded fund (ETF).

Now, the country’s province of Québec is looking at finding a solution to a key cryptocurrency issue – mining. According to the Montreal Gazette, the province’s energy distributor, Hydro-Québec, has been given permission to charge higher rates to miners and blockchain-based companies.

Read more: https://bitcoinist.com/cryptocurrency-miners-in-quebec-to-be-charged-double-for-electricity/

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[gentlemand]

"Hydro-Québec stated that it had received approximately 300 new requests for power from mining and blockchain-based entities. This translates to 18,000 milliwatts (mW), or more than 40 percent of the distributor’s generating capacity."

If that's true then I can see why they're not keen. You wouldn't really want real people freezing to death in the dark to make sure Rapecoin keeps ticking over.

If it would screw electricity supplies to more important areas then it should be a straightforward ban. If they can deliver that capacity then I see no reason why anyone should pay more than anyone else. It's just as meaningful or meaningless as any other industry that sucks up huge power for their own profit. That's why they're paying for it.

[stomachgrowls]

"Hydro-Québec stated that it had received approximately 300 new requests for power from mining and blockchain-based entities. This translates to 18,000 milliwatts (mW), or more than 40 percent of the distributor’s generating capacity."

If that's true then I can see why they're not keen. You wouldn't really want real people freezing to death in the dark to make sure Rapecoin keeps ticking over.

If it would screw electricity supplies to more important areas then it should be a straightforward ban. If they can deliver that capacity then I see no reason why anyone should pay more than anyone else. It's just as meaningful or meaningless as any other industry that sucks up huge power for their own profit. That's why they're paying for it.

For sure they wont risk out the supply and just diverting it to be given to those miners.Its just really a dumb thing for them to be done but i dont see a point why would they do charge up not us just the same on a typical consumer?
They do really took advantage on what they can possibly get in means of taxes. Sad for miners on that place indeed.

[squatter]

"Hydro-Québec stated that it had received approximately 300 new requests for power from mining and blockchain-based entities. This translates to 18,000 milliwatts (mW), or more than 40 percent of the distributor’s generating capacity."

If that's true then I can see why they're not keen. You wouldn't really want real people freezing to death in the dark to make sure Rapecoin keeps ticking over.

If it would screw electricity supplies to more important areas then it should be a straightforward ban. If they can deliver that capacity then I see no reason why anyone should pay more than anyone else. It's just as meaningful or meaningless as any other industry that sucks up huge power for their own profit. That's why they're paying for it.

For sure they wont risk out the supply and just diverting it to be given to those miners.Its just really a dumb thing for them to be done but i dont see a point why would they do charge up not us just the same on a typical consumer?
They do really took advantage on what they can possibly get in means of taxes. Sad for miners on that place indeed.

Because in spite of the shitty job they do, governments are supposed to answer to residents, and treat public health and safety as paramount.

What they spelled out in the report is basically this: Miners are applying for such capacity that Hydro-Québec would be forced to bid "for large amounts of power and energy that may be unnecessary and costly for all customers." If they don't discourage miners with an additional tax, they predict that costs will rise, and those additional costs will be distributed to residents and typical businesses. The logic is that if miners are causing costs to rise, they need to pay for it.

Perhaps that's fair enough. I think Bitcoin miners soaking up excess capacity is great. But if I lived there and saw miners literally driving my electricity costs up, I'd be fucking pissed off. Residents don't owe miners anything.

If electricity is too expensive, miners can set up shop somewhere else where there is excess capacity (and therefore cheaper electricity).

[timerland]

I don't think that it's fair for electricity companies to be able to charge anyone more for the same product, regardless of what the business or person is using the electricity for. Bitcoin miners included, they're not getting any better quality electricity than anyone else.

But hey, what can you do. It's the government's decision, and if they're not generating enough electricity to deliver to every day citizens without having to raise prices, then they will eventually place a tax on electricity for mining.

As squatter said, miners, especially big mining businesses, can definitely just relocate to countries where mining is less expensive - a hassle, but still can be done.

[gentlemand]

https://twitter.com/francispouliot_/status/1021750269686820864

https://translate.google.co.uk/translate?hl=en&sl=auto&tl=en&u=http%3A%2F%2Fplus.lapresse.ca%2Fscreens%2Ff106c952-7317-4270-bc09-27c6366de80b__7C___0.html%3Futm_medium%3DEmail%26utm_campaign%3DInternal%2BShare%26utm_content%3DScreen

An interesting conclusion here.

'Hydro-Québec wants to reserve a 500 megawatt energy block for the most promising and interesting blockchain technology projects in Quebec.'

So no to Bitcoin. Yes to shite. Must be some type of first.

[1Referee]

'Hydro-Québec wants to reserve a 500 megawatt energy block for the most promising and interesting blockchain technology projects in Quebec.'

So no to Bitcoin. Yes to shite. Must be some type of first.

It doesn't really matter in the end. Bitcoin is not a project and doesn't need any kind of nonsense support from shitty local governments.

I'm sure that if Bitmain starts lobbying there and throws around with money, that they can start mining as soon as possible. The underlying problem is that they had plenty of electricity to sell, but realized they sold it well below what it is worth with so much miner demand, and are now trying to squeeze out some extra money by doing this shit. This doesn't seem like a stable environment for serious mining operations, so the only thing they do is shoot themselves in the foot.

[orions.belt19]

I don't think that it's fair for electricity companies to be able to charge anyone more for the same product, regardless of what the business or person is using the electricity for. Bitcoin miners included, they're not getting any better quality electricity than anyone else.

But hey, what can you do. It's the government's decision, and if they're not generating enough electricity to deliver to every day citizens without having to raise prices, then they will eventually place a tax on electricity for mining.

As squatter said, miners, especially big mining businesses, can definitely just relocate to countries where mining is less expensive - a hassle, but still can be done.

I agree, this should be a violation of equal protection law. They have discriminated on a specific group or class of people, who are the miners, and this is unfair to them. I understand how miners have a large consumption of electricity and the government may have done this to discourage mining but I think that this is a low blow. It is discriminatory towards the miners since they have been made to pay more based on their prodession. Quebec will lose investors and mining industries if this were to be implemented and enforced.

[squatter]

I don't think that it's fair for electricity companies to be able to charge anyone more for the same product, regardless of what the business or person is using the electricity for. Bitcoin miners included, they're not getting any better quality electricity than anyone else.

But hey, what can you do. It's the government's decision, and if they're not generating enough electricity to deliver to every day citizens without having to raise prices, then they will eventually place a tax on electricity for mining.

As squatter said, miners, especially big mining businesses, can definitely just relocate to countries where mining is less expensive - a hassle, but still can be done.

I agree, this should be a violation of equal protection law. They have discriminated on a specific group or class of people, who are the miners, and this is unfair to them.

In the US, equal protection applies to individuals, not businesses. From my reading of this Wikipedia article, it's the same in Canada:

Equal protection of the law ensure that the protections imposed by law will be proportionate so that the human dignity of every person is equally safeguarded by the law.

It seems like miners would be viewed as businesses in Canada, not "persons" in the context of equal protection:

A business is an activity that you intend to carry on for profit and there is evidence to support that intention. A business includes:

• a profession
• a calling
• a trade
• a manufacture
• an undertaking of any kind
• an adventure or concern in the nature of trade.

Quebec will lose investors and mining industries if this were to be implemented and enforced.

I think that's the point.