Hydro-Québec will receive the equivalent of nearly $450 million less in electricity rate increases over the next three years. While denounced by the Crown corporation, the Régie de l’énergie’s decision does offer some relief to business customers.
The decision, handed down on Monday, makes a bigger difference for business customers, while the Legault government capped the residential rate increase at 3 per cent.
Hydro-Québec requested annual increases of 4.8 per cent for businesses and institutions in 2026, 2027 and 2028. The Régie ultimately granted it 3.6 per cent each year.
The difference is less significant for residential customers. Hydro-Québec has requested a 3 per cent increase each year, which it will receive in 2026 and 2027. The permitted increase is 2.6 per cent in 2028.
The owner of a five-and-a-half-room apartment would thus pay $2.30 more per month, according to the Régie’s estimates. That’s 10 cents less than Hydro-Québec’s proposal.
For the owner of an average home (158 square meters), the monthly increase is $5.46, which is 24 cents less than what the state-owned company has been demanding.
The Board did not provide an example for industrial consumption, which varies greatly from one industry to another.
“Concrete consequences”
For the three years analyzed, the Régie estimates that the revenues required for Hydro-Québec to operate its network are $433.4 million lower than the analyses presented by the Crown corporation, out of a total of nearly $50 billion.
Hydro-Québec is denouncing the Régie’s decision, which would reduce its financial flexibility by nearly $450 million. Despite lower bills, customers will ultimately lose out, according to the Crown corporation.
“The imposed adjustments send a worrying signal and will have concrete consequences for customers, particularly in terms of network reliability and energy efficiency,” Hydro-Québec said in a statement.
“Recent weather events prove the importance of investing in the reliability of our service,” she adds.
The Crown corporation is open to challenging the decision. “(Hydro-Québec) will evaluate its options and determine its next steps.”
In its decision, the Régie reduces by 13 per cent the annual budgets requested for energy efficiency and power management.
The administrative tribunal also sent Hydro-Québec back to the drawing board with its intention to adopt a tariff for over-consumers.
“The Régie remains concerned about overconsumption and energy waste,” the judgment reads. “However, this imperative must be reconciled with mechanisms that can identify real overconsumption.”
The Régie invites Hydro-Québec to submit a more detailed proposal this fall.
The CFIB is “relieved”
In a statement released to the public in the evening, the Canadian Federation of Independent Business (CFIB) said it was “relieved” by the decision made by the Energy Board.
“The Régie’s decision brings relief, but it still leaves a bitter taste for entrepreneurs,” says François Vincent, Vice-President for Quebec at the CFIB. “Relief, because the Régie did not accept Hydro-Québec’s request and adopted a lower increase than the one proposed. This demonstrates the importance of a check on power. That said, this increase for the next three years remains one of the largest in 15 years, and SMEs continue to pay more in order to maintain lower rates for residential customers.”
–This report by La Presse Canadienne was translated by CityNews
