Industrial Electric Furnace Used for Cryptocurrency Mining?…KEPCO Begins On-Site Investigation

[Sejong=Asia Economy Reporter Kwon Haeyoung] Korea Electric Power Corporation (KEPCO) has launched on-site investigations targeting places suspected of using industrial and agricultural electricity, which is cheaper than general electricity, for cryptocurrency mining.

According to KEPCO on the 11th, on-site investigations have begun targeting customers with high electricity usage among agricultural and industrial customers, and the investigations are scheduled to be conducted until the end of this month.

KEPCO also conducted on-site investigations in early 2018, identifying 38 companies suspected of using electricity contracted for industrial or agricultural purposes for cryptocurrency mining, and imposed penalties totaling about 500 million KRW on them.

Since cryptocurrency mining farms operate 24 hours a day and consume a large amount of electricity, KEPCO investigated 1,045 households whose average monthly electricity usage increased by more than 450 hours.

According to KEPCO's "Electricity Basic Supply Terms and Conditions Enforcement Rules," cryptocurrency mining is subject to general electricity rates. Industrial electricity rates are about 60% of general rates, and agricultural rates are about 30% of general rates.

A KEPCO official said, "As the value of cryptocurrency has recently risen, the amount of electricity used in violation of contracts appears to be increasing," adding, "If detected, we will charge penalties including the unfairly obtained profits plus additional fines, and if the penalties are not paid, power supply may be cut off."

This content was produced with the assistance of AI translation services.