Energy Economist, Ed Hirs, says ERCOT’s Independent Market Monitor has pointed out the cryptocurrency miners have increased the cost of electricity for everyone by 5 to 10 percent annually. “Having new demand in a market where supply doesn’t respond rapidly just simply means there will be higher prices for everyone to pay.” He said.
Demand from cryptocurrencies, data centers, and population growth are all contributing factors. However, ERCOT has been overcharging customers since the freeze in Houston in 2021. “We were overcharged more than 4 billion, in 2023- we were overcharged 12 billion. ERCOT CEO, Bob Lavagas said that was ‘regrettable’.
He says Texas has 2 grids – El Paso Electric and the Entergy service area extending from Beaumont to the Woodlands and they pay 20 percent less than those of us in the ERCOT service area have to pay.” Hirs said.
According to Hirs, the EIA data shows in May of this year residential consumers paid 18 cents a kilowatt hour while the commercial and industrial users paid less than half that and they get a break on that because they can deduct it from their income taxes.
He said residential consumers foot the bill and that’s why these industries flock to Texas. Hirs says the market has never been restructured for the benefit of the consumer. He urges the public to speak to your legislators.