Hydro-Québec customers will pay for Énergir customers who abandon natural gas heating to switch to dual energy.
A judgment from the Superior Court rules in favor of Hydro-Québec, which had contested a decision by the Régie de l’énergie on the agreement concluded with Énergir on dual energy. This agreement provided that the state company would pay financial compensation for the gas distributor’s loss of revenue and would increase electricity rates to recover this compensation.
An initial favorable decision by the Régie de l’énergie was contested, in particular by industrial consumers and environmental groups. The Régie reversed its first decision and prevented Hydro-Québec from increasing its rates to absorb the amounts paid to Énergir.
Rarely, Hydro-Québec contested this second decision of the Régie de l’énergie in the Superior Court, which has just ruled in its favor.
The agreement between Hydro-Québec and Énergir to encourage natural gas consumers to switch to electricity-natural gas dual energy will increase electricity rates by 1.4%, in addition to the regular annual increase. By 2050, $2.4 billion could thus be drawn from electricity rates to compensate for Énergir’s loss of revenue.