According to media reports, New Brunswick’s main power company has been denying energy applications from crypto miners and other large-scale users since last year. New Brunswick is one of the thirteen provinces and territories of Canada.
Sources reveal that the company has received approval from the authorities regarding the temporary suspension of energy being provided to crypto miners. The cabinet order that endorsed the moratorium included concerns from the province’s main power company.
The cabinet order, filed with the Energy and Utilities Board, said N.B. Power had “policy, technical and operational concerns about [its] capacity to service the anticipated additional load demand” from crypto mines.
It said the utility had received “several new large-scale, short-notice service requests” to supply electricity to crypto mining companies that could put “significant pressure” on the existing supply of electricity. The order, signed by Premier Blaine Higgs, said non-crypto companies shouldn’t be subject to the pause for any longer than required for the review. In Canada, a premier is the head of government of a province or territory.
However, it is still unclear exactly when the moratorium on energy access for crypto miners began, as the policy seemingly went unnoticed until recent media coverage. Nonetheless, sources reveal that New Brunswick’s provincial government endorsed the moratorium in March last year, and the latest local media report indicates that the policy remains in place.
Additionally, the provincial government also ordered a review of the crypto sector and its impact on the energy supply. That order remains private but was due December 2022 and was intended to ensure that restrictions do not continue to affect non-crypto companies.
The moratorium was introduced shortly after a crypto mining company, Taal Distributed Information Technologies, expressed its intent to begin operating in New Brunswick. Another firm, Hive Blockchain Technologies, already operates in the province. Other Canadian provinces, including British Columbia, Manitoba, and Quebec, have imposed similar moratoriums.
Notably, the excessive consumption of energy by crypto mining activities has been a concern to regulators across the globe, especially as the demand for sustainability rises. In the US, the government is proposing a tax on cryptocurrency mining, citing the industry’s negative impact on the environment.
The tax called the Digital Asset Mining Energy (DAME) excise tax, aims to make crypto companies accountable for their environmental impact, with the tax coming into effect after a phase-in period and would be equal to 30% of the cost of electricity used for mining.
Several regions in the US have implemented a strict approach to crypto mining like New York and North Carolina. On November 22, New York Governor Kathy Hochul officially enacted a two-year ban on PoW crypto mining. The ban not only prevents new mining operations but will also restrict companies that are already operating in the state from renewing their permits. Any brand-new PoW mining business in the state is only permitted to run if it completely relies on renewable energy.