Paraguayan President Santiago Peña has dismissed complaints from miners who are protesting a 14% increase in electricity prices that will be introduced on August 1 by Paraguay’s National Electricity Authority (ANDE).

Santiago Peña said that the Paraguayan government supports the increase in fees for miners and that it will not affect the viability of the industry in the country. Even if the increase in fees reduces the profitability of the cryptocurrency mining business, it will not prevent mining companies from continuing their operations in Paraguay.

Peña disagrees with the recent statement by the Chamber of Digital Assets Mining (Capamad) that the industry creates a large number of jobs. He also noted that the contracts signed with mining companies do not contain clauses obliging the government to consult with them before raising electricity prices. Tariffs can increase if energy costs rise, so the price increase does not require agreement with the miners, the head of state explained.

Capamad criticized Peña’s comments, stressing that the contracts signed with ANDE stipulate that any changes must be applied by mutual agreement of both parties. However, the president is confident that even with the price increases, Paraguay still has many companies in the sector interested in setting up business in the country.

“We are preparing for the arrival of companies that will become part of Paraguay’s technological ecosystem and are ready to turn our country into a hub of technological innovation,” said Santiago Peña.

In April, Paraguayan senators expressed their willingness to discuss the possibility of selling excess energy from the Itaipu hydroelectric power station to miners instead of exporting it to Brazil and Argentina. Earlier, the Paraguayan authorities even proposed banning mining in the country for 180 days.