Russian Miners to Remain Under 'Take or Pay' Scheme Despite Concerns

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Russian miners will remain under the "take or pay" electricity pricing model, according to the Ministry of Energy. The new rules, effective in 2027, require miners to pay for most of their maximum energy capacity, not just actual consumption. The change aims to protect utilities from rising costs. Users of Proof of Capacity (PoC) and other consensus mechanisms have raised concerns. Mining firm "Algorithm" warned the scheme could render operations unviable within two to three years.

For miners, even after addressing comments, nothing will change, according to the Ministry of Energy: crypto mining companies will not be removed from the new mechanism—meaning they must pay starting January 1 based not on actual consumption, but on nearly all kilowatts of their maximum power capacity.

The document is primarily being changed for utility companies. According to the publication, citing participants of the working group meeting, the new mechanism is proposed not to apply to enterprises in heating, water supply, and wastewater management.

Utility companies complain about rising costs and note that, according to the draft government decree, they are required to maintain backup power sources, which will incur additional expenses. Costs could at least double, and these expenses will ultimately be passed on to consumers through tariffs, the utility companies argue. In addition, the threshold power levels proposed in the draft have no technological or economic correlation with the actual costs of power grids, resulting in unjustified additional revenue for network operators, according to members of the working group.

At the Ministry of Energy, journalists from Kommersant were explained that large data centers (DCs) and mining facilities have been classified into a separate category—the mechanism will apply to them regardless of their connection date to the grid, meaning it covers both new and all existing electricity purchasers. Moreover, for miners, the minimum billable volume is proposed to be set immediately at 90% of the company’s declared capacity, rather than 70% as for other users.

The "take or pay" principle means that consumers will pay for electricity based on their maximum possible consumption rather than actual usage. The scheme will affect industrial facilities with a capacity exceeding 670 kW. The Ministry of Energy expects the new mechanism to take effect in 2027.

Previously, the mining company "Algoritm" conducted research showing that within the next two to three years, the model of continuous operation of mining farms powered by the electrical grid will become economically unviable in Russia. Due to rising energy costs, Russia is already “losing out in competition to major U.S. companies,” the study’s authors concluded.

The "Algorithm" sent a letter to the Russian Ministry of Energy requesting the abandonment of the "take and pay" principle. The letter stated that, under current unfavorable economic conditions, miners could become energy balancing entities—capable of utilizing energy capacity during periods of underutilization and reducing consumption when the grid is under strain.


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