Manitoba to Use Crypto Tax to Lower Residential Power Bills

Manitoba plans to utilize revenue generated from a tax on cryptocurrency mining and AI data centres to reduce utility costs for residential ratepayers, according to reporting from BetaKit.

Provincial Finance Minister Adrien Sala stated last Thursday that the government intends to use the levy to lower Manitoba Hydro bills starting early next year. Sala noted that large-scale AI and crypto operations consume significant electricity and should contribute fairly to the system. The government estimates the levy could generate up to $20 million in revenue, which would result in an annual rate offset of $50 for Manitoba households.

Passed into law last summer and effective as of June, the legislation requires Manitoba Hydro to establish separate customer classes for crypto and data centre operators. For those consuming over 5 megawatts, the utility applies a 100 percent markup, effectively doubling the standard electricity rates.

BetaKit reports that while the tax targets both sectors, Manitoba currently lacks data centres large enough to trigger the levy, with the exception of one 5.5 megawatt project under development near Rosser, Man. Consequently, the province expects the revenue to be generated almost entirely by the cryptocurrency industry. This comes amid warnings from the crypto sector earlier this year that the legislation would effectively shut down the industry within the province.