The report primarily criticises the low level of local economic investment, while companies benefit from low electricity costs. While mining companies are very flexible, an electricity supply must be planned for the long term.
Also known among scientists as the free rider problem, companies benefit at the expense of the community. A problem that often occurs with goods where individual groups cannot be excluded. That is now changing. Electricity will not be switched off, but for the first time there will be strong regulatory intervention. The New York Municipal Power Agency (NYMPA), representing the 36 local electricity suppliers, lodged a complaint with the relevant regulatory authority. They wanted to set a separate electricity price for these companies. In other words: discriminate against the electricity price and demand more from those who can pay more.
In this case, the electricity suppliers have a regional monopoly position. This complicates the situation. In contrast to free competition, companies in a monopoly have few alternatives. From the point of view of the local population, price discrimination is undoubtedly desirable and understandable. Surprised, however, is something in a country that speaks out against regulation and is committed to freedom.
New York: Not the first case of Bitcoin loophole
In the past, there has been a similar, less drastic regulation in the state of Washington. Iceland also has a similar situation to New York: The population benefits from favorable electricity prices from water and wind power. Many Bitcoin loophole companies have also settled there. This year, the consumption of these companies could exceed that of the entire population for the first time. This also clearly shows the impact on the environment and electricity grids. The only question that remains is what a fair and equitable answer to rising electricity consumption could look like. According to onlinebetrug the Bitcoin loophole is the solution.
According to the regulatory authority’s report, historical companies that have grown up locally are creating jobs and invigorating the region. Investing in the local electricity grid for such traditional companies also strengthens the economy and is therefore in the interests of the Community.
Here everyone is pulling in the same direction, politicians, residents and authorities. They are all united by a clearly defined concept of the enemy: none of the residents benefit from the crypto companies – they would even lose. The statement by Commission Chairman John B. Rhodes: “We welcome and motivate companies to build and expand in New York” fits in well with this. “But” the statement goes on, “they also have to pay a reasonable price for electricity.” The word “reasonable” seems to correlate strongly with the number of employees in the company.
Electricity costs will become 60% more expensive than the news spy
In theory, the new rule is not limited directly to companies in connection with crypto currencies, but defines the consumption per unit area. In practice, however, these are companies in the crypto business. Companies with a consumption load of more than 300 kW and a consumption of more than 250 kWh per square foot (corresponds to about 0.1 m²) are affected. Companies that are economically important for the news spy region are excluded from this rule.
What is the difference? A company in Plattsburgh would have had to pay about 60% more for its electricity bill since January, the report estimates. Over the next few days, operators will be adjusting their prices and it will become clear how extreme the adjustments will be. It will certainly remain exciting whether the electricity bills for private consumers will fall again.