Kyrgyzstan Increases Electricity Tarrifs for Cryptocurrency Miners

The Kyrgyzstan government has raised electricity rates for crypto miners in country as part of the recent revision of its electricity tariffs for various groups of consumers. Authorities in Bishkek has given their explanation regarding the increment, arguing that it was indeed necessary give the massive amount of energy the coin minting process uses.

Crypto Miners in Kyrgyzstan to Start Paying More for Electricity

All crypto mining facilities within Kyrgyzstan are to immediately begin paying the new rates for the electrical energy they need or use in minting digital currencies. The increase comes after the government’s decision to update electricity rates across board in order to ensure a steady, reliable, and continuous functioning of the energy sector.

Kyrgyzstan Increases Electricity Tarrifs for Crypto Miners

Going by a recent official announcement, the price review is in line with the country’s Medium-Term Tariff Policy for Electricity (2021–2025), that is already approved by the Cabinet of Ministers.

However, amongst the 14 consumer groups to be affected by the tariff revision, is “Mining entities (cryptocurrency)”. And according to the information contained in the published announcement, consumers in this group will have their base tariff calculated with a multiplying factor of 2.0.

The implication of the new tariff rate is that crypto miners will now be paying 2.52 Kyrgyzstani som (less than $0.03) per kilowatt-hour of electricity they use. Meanwhile, for the next four years covered in the new tariff policy, prices will be adjusted every year in accordance with the average level of inflation that year.

Alongside the crypto mining farms, authorities in Kyrgyzstan have also listed crypto mining companies in the gold mining sector and producers of alcoholic beverages as consumers with high demand and use of significant power supplies. The government explains that it has put into consideration, the additional costs of operating the country’s thermal power plants and also the distribution costs to arrive at the revised tariffs.