Paraguay’s State-Owned Company Defined Electricity Tariffs for Bitcoin Miners
Paraguay is one of the countries in Latin America, along with Venezuela, with the lowest electricity rates. Electricity is the main input for Bitcoin mining, which bases its BTC issuance system on the consumption of electricity, an element of nature that can be generated constantly in exchange for a price. Sosa indicated that, in order to lower the payment increase, companies should reduce their consumption during peak load hours.
Good electricity prices in Paraguay have put the country on the Bitcoin mining map. According to a resolution of the country’s main energy agency, cryptocurrency miners will have to pay rates between 6% and 58% higher than the established ones.
Resolution No. 46984 of the ANDE (National Electricity Administration) indicates that the new rates will depend on the electrical voltage used by their customers and the time of demand during peak hours. The measure is designed for those companies that have an intensive consumption of electricity.
Thus, those Bitcoin miners and data center managers will have to pay an increase in the electricity tariff of 26% for supplying on the 220 KW line; 36% the 66 kW line; 41% if using the 23 kW line. But, if the Bitcoin miner uses ANDE’s 23 kW line, the increase will be 58%.
“If he is not going to disconnect, he is going to use 100% of the time, without decreasing his demand during peak load hours, then the variation is from 26 to 58%”, indicated Felix Sosa, president of ANDE.
Sosa adds that Law 966 establishes “how ANDE’s tariff is calculated, that is to say that it covers all the costs of generation, transmission, distribution, debt service and the 8% to 10% profitability necessary to execute the electric infrastructure works”, Sosa indicates.
The president of Ande also indicated that he intends to reserve the availability of electric power for the most productive sector: “We understand that this is a consumption group, which initially are loads that practically do not generate labor”, he criticized.
During the days that pass, the president of ANDE will visit the deputies to accept the veto made by the president of the nation, Mario Abdo Benítez, to the law of cryptocurrencies. And which was subsequently rejected in the Senate on September 30, on the grounds that the president’s arguments were insufficient.
According to Sosa, 15% increase for the Bitcoin mining sector is not enough to cover ANDE’s operating costs. In August, the entity requested new tariffs for the Bitcoin mining sector.
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Peak load hours (or higher demand) in Paraguay
According to the resolution, in January, February, and December, from Monday to Saturday, peak load hours comprise between 12:00 and 16:00 and between 18:00 and 22:00.
In March, April, October, and November, the hours are from 13:00 to 15:00 and between 18:00 and 22:00. The months of May to September are considered peak load months between 17:00 and 21:00, due to the fact that these are the coldest months of the year.
Sosa indicated that, in order to lower the payment increase, companies should reduce their consumption during peak load hours.
Paraguay is one of the countries in the region, along with Venezuela, with the lowest electricity rates. Electricity is the main input for Bitcoin mining, which bases its BTC issuance system on the consumption of electricity, an element of nature that can be generated constantly in exchange for a price.
(Featured image by Quince Creative via Pixabay)
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