In Paraguay, Miners and National Electricity Administration Clash Over Tariff Hikes
In Paraguay, a conflict has erupted between legal cryptocurrency miners and the National Electricity Administration (ANDE) over the planned increase in electricity tariffs. On July 19, ANDE announced a 16% price hike for miners, starting from August 1. This decision has raised serious concerns among representatives of the Chamber of Digital Asset Mining (Capamad), which represents the interests of Paraguayan miners.
According to Jimmy Kim, a representative of Capamad, the increase in electricity tariffs will be a serious blow to the industry. In 2022, ANDE already raised fees by 54%, forcing miners to sign five-year agreements. Now, with the new increase, up to 70% of legally operating mining companies may cease their activities. This could lead to the loss of several thousand jobs and have a negative impact on planned investments in technological development and infrastructure amounting to over $1.5 billion.
Kim emphasizes that over 50 legal mining companies operating in Paraguay have already brought the country more than $700 million, the largest volume of foreign direct investment in its history. These companies play a crucial role in the country’s economy, and the tariff hike could undermine their activities and economic contribution.
Capamad calls on ANDE to reconsider the decision to increase tariffs in order to preserve an important source of revenue for Paraguay’s economy. It is also worth noting that in the recent past, local law enforcement authorities have accused several ANDE employees of operating illegal mining farms, although the management itself has assured that it is cooperating with the police in investigating this matter.
