Manitoba government says it will use crypto levy to reduce hydro rates

The Manitoba government announced plans to use a levy on cryptocurrency operations to reduce hydro rates. Finance Minister Adrien Sala stated that the government anticipates the measure to generate approximately $20 million annually, which would translate to about $50 in savings per household. The levy, which amounts to $205 plus GST for the first year, will automatically renew at $233 plus GST every 52 weeks, representing a 10% discount off the regular annual price of $259.35.

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Sala explained that the government expects the measure to bring in about $20 million based on current crypto operations. However, the returns on the levy could decrease if crypto companies leave the province or go bankrupt due to the 100% markup on the rates they currently face. Companies had previously warned that the sharp rise in their rates would be financially devastating.

The government introduced the changes as part of a budget implementation bill, which also includes restoring the Workers Compensation Board to the government for financial reporting purposes. Sala noted that while having the WCB on the books would create more volatility, it would also increase transparency.