Hydro-Quebec proposes rate increases of 3 per cent next April

Hydro-Quebec is proposing rate increases of 3 per cent for its residential customers, 3.9 per cent for its commercial customers and 3.3 per cent for its large industrial customers, effective April 1, 2025.

The state-owned company announced on Thursday that it had filed these rate applications with the Régie de l'énergie, which will study them before approving them.

In a press release, the electricity distributor explains that the increases are "the result of inflationary pressure in recent years and are the same as those for 2024 for residential customers and large industrial customers." As for its commercial rates, the suggested increase is lower than that for 2024, which was 5.1 per cent.

Hydro-Quebec points out that a 3 per cent increase in the domestic rate would represent a $2.40 increase for a dwelling. The impact would be $4.50 for a small house and $6 and $7.40 for a medium-sized house and a large house, respectively.

The public hearing and review by the Régie de l'énergie are scheduled to take place between September and December and a decision is expected by March at the latest.

At the same time as filing its applications, Hydro-Quebec has also announced new incentives to encourage better consumption and lower electricity bills.

In particular, the organization wants to launch a "voluntary incentive rate" for customers who shift their consumption, for example, by recharging their electric vehicle at night. Those who sign up could save up to $350 a year, according to Hydro-Quebec.

The state-owned company also wants to control over-consumption by imposing a higher rate for households that consume more than 50,000 kWh per year. These represent around 1 per cent of residential customers, according to Hydro-Quebec.

It also intends to facilitate home energy production, including solar panels, and encourage the installation of efficient heat pumps by increasing its energy efficiency budget from $150 million to $500 million by 2025.

This report by The Canadian Press was first published in French on Aug. 1, 2024.