The arrival of Michael Sabia could have an impact on the wallets of Quebecers if we decide to rely on the Régie de l’énergie to set the increase in Hydro-Québec rates, estimates Louis Beaumier, executive director at the Trottier Energy Institute at Polytechnique Montreal.
According to Mr. Beaumier, the tariffs “must evolve correctly or really reflect what are the operating costs of Hydro-Québec”.
About five years ago, the Coalition avenir Québec (CAQ) decided instead to index the price of electricity to inflation. But with the drastic rise in the cost of living, the price of electricity has skyrocketed.
Mr. Beaumier believes that Michael Sabia could suggest going back to the previous formula to ensure that when Hydro-Québec decides to review its rates, “it is to build new structures and to ensure that it has the funds needed to maintain the network.
The challenges of Michael Sabia at the head of Hydro-Québec
Michael Sabia will have many challenges to meet during his mandate, but the main challenge will be to make sure to use Hydro-Québec as well as possible in order to carry out the decarbonization desired by the government, mentions Mr. Beaumier. “Electricity is central to these decarbonization efforts.”
Mr. Sabia will also have to ensure good dialogue between Hydro-Québec and the government during this process.
The new CEO of Hydro-Québec will also be responsible for future work that will meet the growing demand for electricity, while the population continues to increase.
“We will have to build what is necessary to build to meet the growing demand, because the population is increasing, but also because we have this desire to decarbonize our activities. Some processes need to be electrified.”
“I dare to hope that he will make the best decisions,” concluded Mr. Beaumier.
