A 3.6 per cent increase in residential electricity rates, effective April 1, is out of the question, according to Quebec Premier François Legault, who reiterated that the increase should be limited to three per cent.
Thursday, the Régie de l'énergie rejected Hydro-Quebec’s proposal to cap the increase in residential electricity rates at three per cent, opting instead for a 3.6 per cent increase effective April 1.
Reacting to this, Legault took to social media to hammer home the message that “there’s no question here.”
“As long as I am premier, residential rates will not increase by more than three per cent annually. I will find a solution with the government and Hydro-Quebec,” he said.
Christine Fréchette, Quebec’s economy and energy minister, added that the government plans to evaluate its resources to ensure that Hydro-Quebec can limit the increases to three per cent.
The Legault government has repeatedly pledged to keep annual electricity rate increases to three per cent for residential customers, advocating instead for higher rates for businesses to meet Hydro-Quebec’s needs.
However, the Régie determined that “rate increases that do not reflect Hydro-Quebec’s required revenue growth are arbitrary and do not allow Hydro-Quebec to set fair and reasonable rates.”
Accordingly, it set the increases to take effect on April 1 at 3.6 per cent for residential customers, 3.6 per cent for commercial and institutional customers and 1.7 per cent for large-power industrial customers at Rate L.
For commercial and industrial customers, the increases will be lower than those requested by Hydro-Quebec, at 3.9 per cent and 3.3 per cent, respectively.
Hydro-Quebec has already announced that the Régie de l'énergie’s decision will be appealed “in order to limit residential rate increases to three per cent.”
“This decision is not consistent with Quebec’s social, economic and political context,” the public utility company said in a press release.
-- This report by The Canadian Press was first published in French on March 7, 2024.
