The Inner Mongolia Autonomous Region authorities in northern China will scrap the preferential electricity tariff for 21 mining farms identified in the region, according to 8btc.
The decision was made following a review of 30 data-processing and cloud-computing enterprises.
The authorities decided that mining companies should not have access to the regional ‘Power Trading Center’ market. The latter allows electricity suppliers and consumers to set tariffs below the country’s unified pricing system.
According to the publication, the market, operating since 2006, helped participating firms save about 30 billion yuan (~$4.34 million) on electricity purchases as of October 2019.
For participants in the regional market, tariffs run $0.02-$0.03 per kWh. For mining companies excluded from them, electricity prices may rise by roughly 30%. Some experts put the potential tariff at $0.047 per kWh.
Last week, Chinese mining pools were affected by floods in Sichuan, which forced the closure of mining farms in the region and the evacuation of staff. The pools’ hash rate fell by an average of 20%.
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