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Citing the need to act on an “urgent matter,” the Régie de l’énergie has approved a request by Hydro-Québec to set conditions on services for blockchain and cryptocurrency clients.

In a 14-page decision released on Monday, the regulatory tribunal set its conditions, including a “dissuasive rate” of 15 cents per kilowatt-hour provisionally until June 28.

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The board accepted the creation of a category of consumers for “cryptographic usage applied to blockchains,” which means users subject to a preferential LG rate will have to pay the full price.

But because evidence presented by Hydro-Québec “brings up some questions”, the Régie will hold hearings next Tuesday to hear Hydro-Québec and other parties who wish to speak on the issue. And the new rate will not apply to existing cryptocurrency mining operations, at least until after the hearing.

Hydro-Québec said it has received more than 300 requests from companies wishing to establish blockchain systems in Quebec because of the amount and reliability of electricity available, and the cold climate that facilitates cooling of computing equipment. The projects represent a total demand of 15,000 megawatts, or 40 per cent of the total capacity of the network.

So far, crypto mining farms are using 120 MW and Quebec is planning to allocate another 500 MW block to new players.

Among those who have expressed interest in being heard at the hearing is the city of Baie-Comeau, which has a deal in place with a private blockchain company.

Bitfarms, which operates in Magog and St-Hyacinthe, has also asked to be heard. Its spokesperson, Bahador Zabihiyan, said the Quebec blockchain industry was “promising” and that the company needs the preferential LG rate to continue to grow.