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Business Duty Officer

Irkutsk mining: experts on fair stimulus tariffs and cross-subsidization

Irkutsk mining: experts on fair stimulus tariffs and cross-subsidization

In conditions of low tariffication Irkutsk region became a hundredLyceum of Russian mining with all the ensuing consequences.

The problem of illegal mining is not only the increased load on the power grid, due to which accidents constantly occur and equipment wears out ahead of time, but also in elementary safety. After all, often the very hidden mining farms become the causes of the fire.. Suffering from the activity of miners and the business community, which is forced to pay extra for miners under a cross-subsidization scheme.

The thing is,, that crypto miners, as is known, mostly disguised as ordinary consumers. And sometimes miners place illegal farms not only at home, but also in hospitals, schools, other municipal institutions, endangering more and more people and forcing businesses to pay for the electricity consumed by miners. The highest concentration of crypto miners is recorded in the Irkutsk region.

And every day it becomes more and more obvious, what's up with minesomething needs to be done.

Experts gathered to discuss solutions in the Moskovsky Komsomolets studio: Head of the Expert Center for Criminal Law Policy and Enforcement of Judicial Acts of "Business Russia", Associate Professor, Department of Legal Support of the Market Economy, RANEPA, Ph.D., as well as project ambassador “Business Duty Officer” Ekaterina Avdeeva, Internet Ombudsman Dmitry Marinichev, Deputy Director of the Association "Community of Energy Consumers" Dzyubenko Valeriy, Director of the HSE Center for Power Industry Research Sergey Sasim and Deputy of the Legislative Assembly of the Krasnoyarsk Territory Denis Terekhov.

Miners: who are they and what to do with them

Dmitry Marinichev told, that the majority of miners are young people, who are interested in understanding modern financial technologies and who want to earn money with their help. He added, что при этом it is important to distinguish between professional and amateur mining. Professional already legalized, farms operate like businesses and pay taxes. Questions arise only to the so-called home miners.

“Mining has entered our lives quite tightly and in fact it will be very difficult to ban it.. This will spawn more illegal farms, which will cause even more damage.. Therefore, it is better to regulate this activity here., make it taxable and define the rules, on which miners should act", – said Ekaterina Avdeeva.

She added, what to start with the definition of mining, carry out serious legislative activity, determine the mechanism for collecting taxes, sanctions for non-payment and illegal business. She noted, that miners not only use electricity at a reduced rate, but often for nothing, i.e. illegally connected to networks. In such cases, the issue should be resolved already in the criminal plane.. Herewith incentive measures for conscientious miners can also be considered.

In turn, Denis Terekhov said, that the Irkutsk Region and the Krasnoyarsk Territory occupy 90% of all mining in Russia. And Russia itself is the third country in the world in terms of cryptocurrency mining. And he does not exclude, that with the introduction of taxation in Kazakhstan, our country is already in second place.

Cross-subsidization and tariff differentiation

Valery Dzyubenko spoke about cross-subsidization. The thing is,, that not only citizens and energy companies suffer from the activities of illegal miners, but also legal business and budgetary organizations, who, due to subsidies, pay extra for the population.

“In addition to technical problems, that bring loads, accidents and shutdowns, mining also brings an increase in cross-subsidization. Since feed-in tariffs, which are now established for the population, subsidized by legal businesses and budgetary organizations.

As a result, due to the illusion of a cheap tariff, which is established for the population and which the regional authorities are trying to adhere to, refusing differentiated tariff, authorities act short-sightedly", - said Valery Dzyubenko.

Speaking in perspective, then the business will still include the cost of subsidizing electricity in the price of its goods and sell it to the end consumer at a higher price. And budgetary institutions will be forced to reduce the level of their services due to increased electricity prices..

For example, last year, the business community paid extra as part of cross-subsidization 5,7 billion rubles. Entrepreneurs will pay extra this year 7,7 billion rubles, added Dzyubenko. This growth is associated with, that mining is flourishing in the private sector.

If you continue to do nothing in this matter, then everyone will suffer: and business, and government agencies, and energy, and users. Only miners will remain “in chocolate”.

Differentiating the amount of electricity is quite simple. The Irkutsk Region is in an advantageous position in this regard.: power engineers offer very favorable measurement conditions – 5400 kilowatt-hour during the summer months and 12000 kilowatt-hour in winter. For understanding: Now in the region, the average household consumption does not exceed 400 kilowatt hour per month.

In addition, the Baikal region can learn from the experience of the Kemerovo region, where the differentiation has already been set at fairly low values, which are not enough for some households for household needs. I, again for comparison, – in the Kemerovo region, the highest bar is 3800 kilowatt hour per month.

Undoubtedly, it is necessary to set the tariff with an energy reserve. With the introduction of fair tariffs at that level, on which power engineers in the Irkutsk region offer to do this, changes will only affect 1% population - those, who conducts some kind of illegal business activity, including miners.

An interesting situation has developed in the Irkutsk region, when the authorities initially supported the introduction of tariffication, and then abandoned their idea. According to Dzyubenko, the government thus decided to maintain its rating. But didn't think about it, which keeps attractive conditions for "gray" miners. And their illegal activities, as mentioned above, brings only harm.

Sergey Sasim also supports the introduction of a fair incentive tariff. He considers, that cross-subsidization is the most inefficient way to support the population. With all the problems, which are in the Irkutsk region, it is easier and more efficient for the region to introduce differentiation.

“In the future, the Irkutsk region will, in any case, have to resolve the issue of cross-subsidization. The adoption of tariff differentiation would be the right step in this direction.. But just making this decision will not be enough.”, – said Sergey Sasim.

He added, that the most reasonable way to solve the problems of illegal mining is to create comfortable conditions for cryptocurrencies. Gotta do it like this, to mine illegally was unprofitable.

Based on the results of the round table, one can draw an unambiguous conclusion that, that it is no longer possible to ignore the problem of illegal mining. Constant power surges, fires, load on the power grid and unreasonably high amounts, that the business pays as part of cross-subsidization - too high a price, which the Irkutsk region can no longer afford.

The way out may be the legalization of mining activities and the introduction of a stimulating tariff. The experience of the Kemerovo region has shown, what those indicators, offered by Irkutsk power engineers, not just acceptable, and even beneficial.


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