For miners of crypto currencies it will be expensive in the American state of New York. Electricity suppliers may demand significantly more money from them. The responsible regulatory authority (Public Utilities Commission) now allows the 36 local electricity suppliers separate tariffs for small companies with extreme electricity consumption. The regulation will come into force in March.
Outside the metropolis of New York City, the state of the same name is very extensive and sparsely populated. The landscape is characterized by forests and water. The well-known Niagara Falls are located in the far north of the state. The inhabitants of this area obtain electricity at very low prices from hydroelectric power plants. This locational advantage has increasingly attracted miners in recent years.
The New York authorities speak more generally of Bitcoin secret
According to the official publication, the costs for private households rose noticeably. Residents of the small town of Plattsburgh (20,000 inhabitants), for example, have had to pay an average of 10 US dollars more per month for their Bitcoin secret electricity bill since this year. So far, one kilowatt hour has cost companies just under 2 cents. Residents had to pay about 4.5 cents per kWh. The national average is 10 cents per kWh.
Miners drive up cryptosoft electricity costs according to authorities
The rising cryptosoft electricity prices are an exhausting topic in the economically little prospering rural areas. Read about it: Is Cryptosoft a Scam? Read This Review Before You Sign Up! The culprits have been identified: server farms that are primarily used in connection with crypto currencies. The consumption is enormous: In some municipalities these enterprises consume up to a third of the entire current offer. Plattsburgh has now been the first to impose an 18-month memorandum against new crypto companies.
In order to ensure high consumption, electricity suppliers will have to expand reserve capacities. This requires high investments. These are usually passed on to all consumers and thus beaten against the electricity price for many years. The fear of local utilities and politicians is that companies will put their equipment on trucks and move on before the investment has paid off. There is no local connection or investment. In contrast, the local companies and residents remain sitting on the investments. Investments that no one needs anymore.