Bill 69 on energy could have harmful effects on low-income households, fears the Union des consommateurs (UC). In order to limit the increase in electricity prices, demand should be reduced at the source, in particular by focusing on energy efficiency, the organization argued in parliamentary committee on Tuesday.
In a brief submitted to the National Assembly, the UC explains that consumers are facing a “real risk of rate shock.” The group estimates that residential electricity rates could increase by 5.6% to 9% starting in 2028, due in part to the significant investments planned by Hydro-Québec in the coming years and the high price of new supplies.
To limit increases, demand must be limited, the UC argues in its brief. To do this, the organization would like an “ambitious program to improve energy efficiency for households,” which would notably aim to improve the thermal envelope of buildings. “All of this work would cost less than building new dams” to meet the growth in demand, stated Union de consommateurs analyst Joanie Ouellette in parliamentary committee.
“Having financial incentives for households is really at the heart of the approach that the government must consider” to implement energy efficiency measures, specified the co-director general of the Union de consommateurs, Maxime Dorais, before elected officials. Many households — including tenants — can hardly reduce their electricity consumption, which is largely dependent on their heating needs, added Joannie Ouellette.
The Union des consommateurs is also asking the government to include in the law a cap on the annual increase in residential electricity rates. The organization welcomes the Legault government’s intention to limit the increase in Hydro-Québec’s residential rates to 3%, but wants it to be written in black and white in the bill.
Cross-financing and privatization
According to the UC, the bill “opens a loophole that could lead to the mitigation of cross-subsidization,” a mechanism by which industrial and commercial consumers finance part of the costs of residential customers. “Cross-subsidization is a legitimate social gain and a fair return on the public investment that enabled the creation of the Hydro-Québec network,” the brief reads.
Another “major concern” of the organization: the liberalization of the electricity market in Quebec. “This bill opens the door to an increased presence of the private sector,” thunders the organization. And “just about everywhere, where there has been privatization, there has also been an increase in rates,” added Joanie Ouellette in parliamentary committee.
The study by the parliamentary committee of bill 69 on energy began on September 10 at the National Assembly and will end this Thursday.