(Quebec) There will be “significant increases” in Hydro-Quebec rates within five to ten years, acknowledges the Minister of Economy and Energy, Pierre Fitzgibbon.
The state-owned company plans to invest $155 to $185 billion by 2035 to double its production and decarbonize Quebec.
Because spending will be phased in, “there will be no price shock” within five years, Mr Fitzgibbon said on the sidelines of a cabinet meeting on Wednesday.
PHOTO ROBERT SKINNER, LA PRESSE ARCHIVES
Pierre Fitzgibbon
The Legault government has decided to cap residential rates at 3% per year until 2026. “As long as I am premier, Quebecers’ rates will not increase by more than 3% per year,” François Legault said on social media.
However, “in five or ten years, yes, there will be significant increases,” said Pierre Fitzgibbon. The question at that time will be how we allocate investment costs between industrial, commercial and residential. It’s a big debate as you know.”
He said that “we want to do everything to ensure that the price shocks are as smooth as possible.”
Electricity rates could increase by 5.6% to 9% per year starting in 2028, according to projections from the Consumers’ Union published in THE Montreal Journal Wednesday.