Paraguay’s Electricity Authority Requests Higher Rates for Crypto Miners, Partial Veto of Mining Legislation

The legislature last month approved a bill regulating crypto mining and trading in the country.

AccessTimeIconAug 4, 2022 at 8:05 p.m. UTC
Updated Aug 4, 2022 at 8:11 p.m. UTC

Andrés Engler is a CoinDesk editor based in Argentina, where he covers the Latin American crypto ecosystem. He holds BTC and ETH.

Paraguay’s National Electricity Administration (ANDE) presented a draft decree to President Mario Abdo’s National Economic Team asking to charge a higher tariff to crypto mining companies.

In addition, ANDE President Félix Sosa told a local a radio station he will ask Abdo to partially veto the legislature’s recently passed bill regulating crypto mining and trading. At issue, according to Sosa, is a cap on the rate that can be charged to miners at just 15% above the industrial rate.

“On that point we believe that [the cap] has to respond to a cost structure so that it is viable for the installation of electric power supply,” Sosa said, adding that he wants mining companies to pay their tariffs in advance in U.S. dollars, with an annual readjustment in that currency.

In the Alto Paraná area, according to Sosa, illegal connections by mining companies led to losses of $410,000 in July alone, bringing losses to $2.2 million for the first seven months of the year.

In some cases, mining companies were paying between 80 and 160 times less than the corresponding amount for their real energy consumption, according to ANDE.

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Andrés Engler is a CoinDesk editor based in Argentina, where he covers the Latin American crypto ecosystem. He holds BTC and ETH.

CoinDesk - Unknown

Andrés Engler is a CoinDesk editor based in Argentina, where he covers the Latin American crypto ecosystem. He holds BTC and ETH.