Hydro-Québec is preparing to increase the bill for large companies to ensure a “preferential” rate for residential consumers, as requested by the Legault government since the resignation of Minister Pierre Fitzgibbon.
Hydro-Québec will invest more than $150 billion to increase its clean electricity production capacity and modernize its network.
According to a confidential document obtained by our Parliamentary Office, Hydro is preparing to pass the bill on to around ten sectors including aluminum, greenhouses, pulp and paper and manufacturing.
However, according to the bill on Quebec’s energy future tabled by Pierre Fitzgibbon last June, the bill for Hydro-Québec’s modernization was to be distributed equitably between residential, commercial and industrial customers.
However, the day after the surprise resignation of the superminister, François Legault declared that he wanted to “enrich Quebecers” by making profits on green electricity which is sold to businesses.
Photo taken from X, FRANÇOIS LEGAULT
He suggested that companies would foot the bill with increases of “up to 6%”. Thus, François Legault could maintain the increase in prices for citizens at 3%.
Survey and analysis
Hydro-Québec is preparing to move from words to action. Starting in January, the targeted sectors will be surveyed by a firm mandated by the state corporation in order to determine the value of the “green bonus”.
The state company thus seeks to know the value of the “renewable” and “green” factor of “electricity in Quebec” sold at low prices (L and LG rates) to businesses. In order to raise their rates, Hydro wants to know how much they are willing to pay without relocating their installations elsewhere in America.
Thus, a competitive analysis of each of these industries will be carried out among jurisdictions that compete with Quebec in North America and on the international scene. A comparison of the energy bill will also be included.
Hydro wishes to “measure the sensitivity of the competitive proposal of the different sectors in relation to possible tariff adjustments”.
Jocelyn B. Allard of the Quebec Association of Industrial Electricity Consumers said he was “stunned” by Hydro’s decision. He argues that “industrial customers are not prepared to pay more” for renewable energy.
“It makes them even less competitive,” he said, adding that an increase could lead to the closure of businesses and job losses in Quebec.
“Green tax”
According to the Hydro document, the analysis mandate could last 8 to 12 weeks. The Legault government assures that it will move forward with its bill on Quebec’s energy future which has been postponed until next year. Amendments would already be ready to modify it.
During the special consultations on the project, the new Minister of the Economy and Energy Christine Fréchette had suggested that she would put an end to “gifts” from companies.
In light of the new information, Liberal Marwah Rizqy affirms that the Legault government is attacking Quebec’s industrial sectors with a “green tax”.
“They are preparing, on the sly,” said the spokesperson, convinced that the Fitzgibbon bill will die on the order paper. They will not be able to move forward,” she believes.
On Tuesday evening, the state-owned company affirmed that it is interested “in better understanding the value that green energy has” for its large customers.
“The energy context is changing all over the world, this type of analysis allows us to better understand how we position ourselves internationally. The objective is to promote our clean energy while ensuring that we maintain competitive industrial rates,” said spokesperson Maxence Huard-Lefebvre, to explain Hydro-Québec’s approach.
Sectors targeted by Hydro-Québec
- Battery sector
- Aluminium
- Greenhouses
- Pulp and paper
- Manufacturer
- Green steel
- Data Center
- Chemical (chlorine, petrochemicals, industrial gases, silica)
- Green hydrogen
- Metallurgical
* Remember that dozens of large companies benefit from a discount of up to 20% on their rates until the end of 2032. This is a program from the Ministry of Finance which applies to the rate L.
Extract from the confidential document
“In order to provide food for thought on its pricing strategy, Hydro-Québec seeks to evaluate the competitiveness of its high-power rates compared to other jurisdictions, […] the value of the renewable or green aspect of Quebec’s electricity [«prime verte»]the sensitivity of the competitive position of large customers to price adjustments in Quebec.”
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