Hydro-Quebec's domestic rate indexation limited to 3 per cent
Hydro Quebec - FILE PHOTO (Daniel J. Rowe/CTV News)
Minister of the Economy, Innovation and Energy Pierre Fitzgibbon's Bill 2, which caps Hyrdo-Quebec domestic distribution rates at 3 per cent, was adopted on Wednesday by the national assembly.
"With the bill, the Quebec government is limiting the effects of inflation on domestic rate increases by introducing a 3 per cent cap on the indexation mechanism. The measure is part of the actions targeted in the anti-inflation shield to limit the impact of the rising cost of living," reads a news release from the minister
The bill also made amendments to the Act respecting the Régie de l'énergie (RLRQ chapter R-6.01), allowing for a better control of Hydro-Quebec's obligation to distribute electricity in a context where a strong demand for electricity is expected in the coming years.
"Today, we are fulfilling our commitment to limit the increase in Hydro-Quebec's rates for Quebecers to a maximum of 3 per cent," said Fitzgibbon. "We have also removed Hydro-Quebec's obligation to serve all industrial projects over 5 megawatts. With the new energy dynamic, we must allocate our energy wisely in order to meet our decarbonization objectives, while developing our strategic sectors."
As for small and medium power tariffs, aimed at small businesses and institutions in particular, they will be fully indexed as of April 1, 2023.
"The large power tariffs will also be fully indexed. Tariff L, aimed at large industries, will continue to be adjusted by a rate determined annually by the Régie de l'énergie in order to preserve its competitiveness," the news release concluded.
This report by The Canadian Press was first published in French on Feb. 15, 2023.