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This post reviews the history and details of the proposed legislative amendments, as well as the next steps and potential implications of the Province's efforts to regulate the provision of electricity service to cryptocurrency miners.
Regulating the Provision of Electricity Service to Cryptocurrency Miners
History: Temporary Suspension, Challenge, and Consultation
Crypto-mining involves specialized computers that create new cryptocurrency "coins" by solving mathematical problems. The computers run continuously and require significant amounts of power to operate and prevent overheating.
In
One company affected by the
During the suspension, in the summer of 2023, the Province engaged with BC First Nations, municipalities, utilities, industry associations, and the crypto-mining industry to seek feedback on the development of a permanent crypto-mining electricity connection policy. The Province has not reported on the outcomes of this engagement.
The amendments to the UCA found in Bill 24 will allow the Lieutenant Governor in Council (the "LGIC") broad powers to make regulations respecting the provision by a public utility of electricity service for the purpose of crypto-mining. Specifically, the LGIC could make regulations including:
(a) prohibiting, for a specified period or indefinitely, a public utility from supplying service for the purpose of cryptocurrency mining;
(b) setting a rate, or requiring the commission to set a rate that establishes the following in relation to energy or capacity supplied for the purpose of cryptocurrency mining:
- the charge to be paid for energy or capacity supplied;
- limits on the amount of energy or capacity that may be supplied;
- when service may be supplied;
- conditions that must be met to be entitled to receive service from a public utility;
(c) enabling a public utility to collect from its customers the costs it incurs or the revenue forecasted to be lost as a result of a regulation under this proposed section; and
(d) defining cryptocurrency and cryptocurrency mining.
The Bill 24 amendments expressly permit unique regulations for different persons, places, activities, or circumstances or different classes of persons, places, activities or circumstances.
Next Steps and Implications
Bill 24 received royal assent yesterday, and accordingly is now in force.
The amendments to the UCA will give the LGIC very broad power to regulate what the Province views as an "energy-intensive" industry "creating very few jobs or economic opportunities" for people in BC. However, until regulations are published the implications of this power to regulate power supply for crypto-mining remain largely unclear.
Both the
One question arising out of the move towards regulating electricity with respect to crypto-mining projects is whether the Province could begin to regulate the availability of electricity for other industries in a similar manner. For example, during debate on Bill 24 on
Footnotes
1 See paras 57-60.
2 See paras 47-48.
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