The Tencent Finance received a circular from the Sichuan Electric Grid Company, sent to the mining companies in the region.
The document says that the mining of bitcoins is illegal activity, and therefore the hydroelectric power stations under the control of the SEC will have to stop supplying electricity to such enterprises.
Chinese miners explained to Tencent Finance that they are talking about hydroelectric power stations under the management of the Sichuan Electric Grid Company, and the regulation does not apply to small hydro power stations that are rife with the region.
But the miners are afraid that the SEC will continue to buy up small HPPs and they may find themselves without electricity for mining.
The Chinese province of Sichuan is a region rich in water resources. The hydropower stations in the province have excess capacity, which makes the cost of electricity very low. Most of the mining enterprises in China are located in Sichuan, as well as similar in characteristics of Inner Mongolia.