Politics · Canada · 5 hrs ago
Manitoba will use crypto and data centre levy to lower household power bills
Manitoba will use a levy on crypto miners and large AI data centres to reduce electricity bills for residential customers.
The provincial government predicts the levy could raise up to $20 million a year, enough to cut household bills by about $50 annually.
The levy took effect last June and requires Manitoba Hydro to charge these large electricity users higher rates.
It adds a 100 percent markup on electricity used by crypto operations and data centres larger than five megawatts.
Most revenue is expected to come from crypto mining, because Manitoba has no qualifying data centres in operation; one 5.5-megawatt project is being developed near Rosser.
Manitoba Hydro bills are expected to start falling early next year as the province directs levy revenue to residential ratepayers.
Manitoba plans to use a levy on cryptocurrency mining and AI data centres to lower residential Manitoba Hydro rates.
Finance Minister Adrien Sala said the levy could raise as much as $20 million and reduce household bills by $50 per year.
The province plans to begin lowering Manitoba Hydro bills early next year.
The levy applies 100 percent markups to electricity used by crypto operations and data centres over 5 megawatts.
Manitoba currently has only one proposed data centre project that meets the threshold, so revenue is expected to come almost entirely from cryptocurrency mining.
- Who
- The Manitoba government, led on the announcement by Finance Minister Adrien Sala. Residential Manitoba Hydro customers are expected to benefit.
- What
- Revenue from a levy on cryptocurrency mining and AI data centres will be used to lower residential power bills.
- When
- Sala announced the plan last Thursday. Bill reductions are expected to begin early next year.
- Where
- Manitoba, Canada.
- Why
- The government says the revenue will help keep hydro rates low and make life more affordable for Manitobans.
Manitoba government
Cryptocurrency industry
Purpose of the levy
Manitoba government
The levy will make large electricity users contribute fairly and help lower residential rates.
Cryptocurrency industry
The cryptocurrency industry argued that the legislation’s effects would effectively close down Manitoba’s crypto sector.
Impact on the sector
Manitoba government
The levy imposes 100 percent markups on electricity used by crypto operations and qualifying data centres.
Cryptocurrency industry
The industry has warned that the legislation could effectively shut down the sector in Manitoba.
Manitoba passed the law establishing the levy and requiring Manitoba Hydro to create distinct customer classes for crypto and data centre customers.
The levy came into effect, according to the article.
Finance Minister Adrien Sala said levy revenue would be used to lower residential Manitoba Hydro rates.
The province plans to begin lowering Manitoba Hydro bills.
- Potential levy revenue
- As much as $20 million
- Expected household reduction
- $50 per year
- Electricity markup
- 100 percent for crypto operations and data centres over 5 megawatts
- Qualifying proposed data centre
- 5.5-megawatt project near Rosser, Manitoba
- Rate reductions begin
- Early next year
What people are saying
Our government is focused on making life more affordable for Manitobans, and that includes keeping hydro rates as low as possible for families,
Large cryptocurrency operations and AI data centres use significant amounts of electricity, and they should contribute fairly to the system we all rely on.