The increase in electricity tariffs announced by the National Energy Authority of Paraguay has forced mining companies to look for more profitable alternatives to do business in neighboring countries such as Argentina and Brazil.

Increasing electricity costs for bitcoin mining operations will force national mining companies to reconsider their need to be in the country, announced the president of the Paraguayan Chamber of Financial Technology, Fernando Arriola.

“I see very clearly the preconditions for the future migration of mining companies from Paraguay to Argentina and Brazil in the next six months. About six members of our Chamber have already signed contracts and are preparing documents to transfer their business to Argentina, where energy prices are more favorable,” Fernando Arriola emphasized.

The authorities of the neighboring country have positively assessed the opening up of the prospects for the development of their own mining industry and are favorably considering the possibility of migration of companies from Paraguay. The government of Argentina invites Paraguayan companies to free economic zones, such as the Zapala free trade zone, where in addition to preferential tariffs for electricity, there is no tax on the import of equipment, which in Paraguay is 19%.

The National Energy Authority of Paraguay (ANDE) presented a draft resolution to increase electricity tariffs by 14% to 16% at once, which significantly increases the cost price and reduces the profitability of crypto asset mining.

Earlier, Paraguayan law enforcement agencies accused seven employees of the National Electricity Authority of creating illegal mining farms.