Iran Will Revise Its Policy Towards Electricity Costs For Crypto Mining

The Iranian government is to cut off electricity for crypto mining until new energy prices are approved, according to a report by local news agency Iran Daily.

Mostafa Rajabi MASHHADI, an official at Iran’s Ministry of Energy, revealed that the country has seen a 7% surge of electricity consumption over last month. He emphasized the unusual nature of the surge, in contrast to similar periods in recent years.

According to the official, the Ministry of Energy of Iran believes that this event is caused by the growth of cryptocurrency mining in the country, adding that the state will take the necessary measures to prevent energy problems.

The official also stated that crypto miners “will be identified and their electricity will be cut,” until the government approves the recent ministry’s proposal for a change in prices for crypto mining operations. On June 9, the deputy energy minister of Iran urged that electricity bills for the digital currency miners should be calculated in accordance with real prices, or the same rates established for power exports. Iran annually allocates about $1 bln to subsidize energy costs.

The country’s attitude toward crypto mining had been largely positive since September 2018, with major state authorities accepting mining as an industry.

Image courtesy of Ifmat