- An Iranian energy official has stated that crypto mining has led to an increase in power consumption
- Those found to be using the national grid for crypto mining will be cut off, the official says
- Energy consumption in Iran is subsidized
While cryptocurrency has attracted great interest both from the private and public sector one aspect of its creation that continues to create controversy is its notoriety in making use of large amounts of electricity to the point that people in several countries have been arrested for stealing power in a bid to mine cryptocurrency and various crypto firms have moved operations to places with cheaper energy options. Now, crypto miners in Iran might find themselves in a bit of a tough spot as it was reported on June 23 that an Iranian energy official has given out a warning to them that they might soon be cut off from the power supply which will essentially end their business activities.
Subsidized electricity not meant for crypto miners
The comments in question were made by a spokesperson for the Tavanir, which is an Iranian state-run company which manages power supply and distribution.
According to the spokesperson, consumption in the country has increased by 7 percent in the last month compared to the same time a year ago. The reason for this increase in power usage has been attributed to the activities of bitcoin miners who make use of high levels of power for their activities.
It is, however, illegal to make use of the national grid for the purpose of cryptocurrency mining said Mostafa Rajabi Mashhadi, who added that electricity users who are making use of the power to mine cryptocurrencies will eventually be detected and their access to power from the national grid will be cut off.
Iran to raise electricity costs for miners
According to the report, crypto mining machines that make use of power from the national grid consume the equivalent of 24 dwellings and the current administration is yet to set a tariff for the power consumption of crypto miners.
In Iran, electricity is subsidized and many Iranians take advantage of this by buying appliances such as air conditioners with powerful compressors as well as the crypto miners take advantage of this power to mine crypto in residential areas.
A report from the Iranian economic daily financial tribune this month quoted the deputy energy minister who stated that electricity bills for crypto miners should be calculated in real prices and not be subsidized like ‘normal’ consumption.