The increase in electricity prices will be capped at 3% until after the 2026 elections, provides for the energy reform tabled Thursday by Minister Pierre Fitzgibbon. (Photo: Karoline Boucher / The Canadian Press)
Quebec — The increase in electricity rates will be capped at 3% until after the 2026 elections, provides for the energy reform tabled Thursday by Minister Pierre Fitzgibbon.
Bill 69 opens the door to modulated pricing and provides for an “aid fund for Hydro-Québec domestic customers”, in fact aimed at compensating the state company for the loss of revenue induced by the cap at 3%.
There will be “no huge increase” after 2026 or “price shock”, the Minister of Energy insisted at a press conference, to try to reassure residential customers and businesses.
According to models, the fund could be endowed with 100 to 300 million dollars (M$), but not before 2028, maintains the minister.
Dynamic pricing
In addition, according to the text submitted, the Régie de l’énergie must, from April 2026, set “one or more tariffs” so as to “promote the reduction of electricity consumption during peak periods”, i.e. that is to say, allow Hydro to charge more for its electricity during times of peak consumption.
“The article [de loi] aims to force the debate, in essence, before the Régie,” argued the former deputy minister of the Ministry of Energy, David Bahan, alongside the minister.
“So, we will promote modulation, then we will see what will happen in the future, then we will react if necessary,” added Mr. Fitzgibbon.
The bill also stipulates that the Régie de l’énergie must take into account any concerns that the government may communicate to it.
Future annual rate increases would be set in advance by the Régie de l’énergie, rather than based on the rate of inflation as provided for in another law adopted by the CAQ.
Also, the legislative text provides that the review of residential, commercial and industrial rates would be every three years, rather than every five years currently.
A private electricity distributor would be required to distribute electricity to any person who requests it in the territory where he exercises his right, but would have to prove that he has the technical capacity to make the connection.
The Legault government wishes, through Bill 69, to modify the framework of the energy sector, in particular in order to respond to the increase in demand required for the important challenge of decarbonization of the Quebec economy by 2050.
The government wants Quebec to be the first carbon-neutral state in North America, recalled the minister.
“Our processes are far too slow,” said Mr. Fitzgibbon. We weren’t ready [à la hausse de la demande]we could have reacted more quickly.”
Hydro-Québec would no longer be forced to proceed by call for tenders for its electricity supply contracts.
The bill states that the minister must submit a 25-year integrated resource management plan.
“It defines our overall vision for the energy sector” and it “sets both our climate targets and our economic targets”.
The bill will be the subject of consultations this fall and the minister did not want to impose a tight deadline for its adoption.
Patrice Bergeron
