The contribution that Hydro-Québec will pay to Énergir to compensate for the drop in natural gas sales of its customers who will switch to dual energy will not be enough to fully absorb the gas distributor’s losses. Natural gas consumers will also see their rates increase to offset part of Énergir’s shortfall.
Posted at 7:00 a.m.
The contribution provided for Énergir customers is 0.9%, which will be added to the annual increase in their natural gas bill.
Hydro-Québec customers will contribute more, with a 1.4% increase in their electricity bill to finance the “GHG contribution” that the government corporation will pay to Énergir to offset the drop in natural gas sales from customers of the gas distributor who will switch to dual energy.
An agreement concluded between the two companies and supported by the Government of Quebec provides that Hydro-Quebec will thus pay 400 million to Énergir by 2030 to reduce natural gas consumption and contribute to the objective of reducing greenhouse gas greenhouse (GHG) set by the government.
Hydro-Quebec customers find themselves paying to reduce natural gas consumption and maintain Énergir’s profitability, which arouses strong opposition from residential and industrial consumers, as well as environmentalists.
“This project is unacceptable,” said Patrick Bonin of Greenpeace Canada, who believes that Hydro-Québec should not offer compensation to Énergir so that it stops polluting.
“It’s as if Quebec decided to compensate the oil companies for the loss of income resulting from the sales of electric cars”, he protests.
Distorting the carbon market
The member for Jonquière, Sylvain Gaudreault, does not understand the logic of the agreement between Hydro-Québec and Énergir either. “Taxing green energy to maintain fossil energy is beyond me,” he commented during an interview with The Press.
The one who is also critical of the Parti Québécois in terms of energy does not understand the justification of Hydro-Québec, which claims to find its account in this agreement because it will allow it to reduce its purchases on the markets to meet the peak winter.
This is a short-sighted justification, it is not what is expected of a company like Hydro-Québec.
Sylvain Gaudreault
According to him, the agreement between Hydro-Québec and Énergir unbalances the carbon market, which was set up to encourage companies to reduce their GHG emissions. “Énergir, which is subject to the carbon market and must buy credits to offset its emissions, is reimbursed for its credits by Hydro-Québec,” he explains. What can other emitters subject to the carbon market, who do not have this advantage, conclude from this? »
The agreement between Hydro-Québec and Énergir is currently under the scrutiny of the Régie de l’énergie. Like the other stakeholders who expressed their opposition to the Régie, Sylvain Gaudreault believes that the government’s objectives in terms of reducing GHG emissions must be financed by the Electrification and Climate Change Fund, which was created for this purpose. , and not by Hydro-Québec customers.