Home miners are being blamed for power outages in Russia’s Irkutsk region.

January 3, 2022 - Around 2 mins mins to read

Russian home miners have been blamed for the city of Irkutsk’s power outages. Power outages have grown common in the region, which has the lowest electricity costs in Russia. Subsidized home electricity has made mining a viable source of income for many residents.

Home miners are being blamed for power outages in Russia's Irkutsk region. — *Home miners are being blamed for power outages in Russia’s Irkutsk region.*

Irkutsk’s power grid operators have faced an increasing number of outages. The area and city are seeing a noticeable rise in power demand, straining the distribution network. According to local officials, home miners who create digital currencies in their flats, basements, and garages are to blame.

They are now suggesting a number of steps to address the difficulties out of the escalating scenario. According to the Russian business newspaper Kommersant, authorities intend to increase the capacity of the distribution network in Irkutsk Oblast, implement higher charges for crypto miners, and build dedicated platforms to host their activity.

The Irkutsk Electric Grid Company explained:

“Despite the warm weather in November, the load increased by almost 40% compared to last year. The significant loads on the power networks and the growing number of outages are associated with the activities of miners,”

Utilities in the area have been looking for the mining facilities behind the surge in demand. During the operations, investigators discovered over 1,100 “gray” mining incidents in the Irkutsk Oblast in 2021.

According to a recent report, the Irkutskenergosbyt utility has launched 85 lawsuits against individuals participating in-home crypto mining, with claims totalling 73.3 million rubles (more than $980,000). It has already won nine court proceedings and expects to be compensated for 18.7 million rubles ($250,000).

In December, the federal government in Moscow granted authorities in Russian regions the option to unilaterally establish local electricity pricing for the populace. The legislation is anticipated to drive up the cost of amateur cryptocurrency mining. Subsidized household energy is frequently utilized in Russia to manufacture digital currency at home.

Join CoinCu Telegram to keep track of news: https://t.me/coincunews

Follow CoinCu Youtube Channel | Follow CoinCu Facebook page

Patrick

Coincu News

Market

Home miners are being blamed for power outages in Russia’s Irkutsk region.

Russian home miners have been blamed for the city of Irkutsk’s power outages. Power outages have grown common in the region, which has the lowest electricity costs in Russia. Subsidized home electricity has made mining a viable source of income for many residents.

The Irkutsk Electric Grid Company explained:

“Despite the warm weather in November, the load increased by almost 40% compared to last year. The significant loads on the power networks and the growing number of outages are associated with the activities of miners,”