That’s it ! The cat is finally out of the bag. During a meeting with Hydro-Québec employees, Michael Sabia, CEO of the state-owned company, said that Hydro-Québec rates will have to be increased. Prime Minister François Legault tried to be reassuring by saying that he will “never” increase electricity rates beyond inflation or a ceiling of 3%. The fact that he does not want to commit after 2025 is cause for concern.
Especially since Michael Sabia’s assertion comes as the government is preparing a major bill that will change the way the energy sector works in Quebec. The social debate on energy, which the Coalition Avenir Québec (CAQ) was committed to holding, did not take place.
Electricity, a business opportunity?
According to Michael Sabia, electricity rates must be adjusted upwards “to better reflect the reality that electricity has now become a valuable asset.” Obviously, in a context where companies want to green their image by moving away from fossil fuels, Hydro-Québec’s “clean” energy has great value. We are currently seeing an explosion in demand for hydroelectricity from energy-intensive companies.
The CEO of Hydro-Québec and the Minister of Energy (who is also Minister of the Economy, remember) seem to see the energy transition as a simple business opportunity. Is it really necessary to explain to them that before being a valuable asset, electricity is an essential service?
Access to energy is an essential condition for respecting human rights. Without energy, it is impossible to eat well, live in healthy housing, be in good health or live with dignity. Increasing electricity rates will have major consequences for many households who are already struggling to pay the Hydro-Québec bill. Quebec’s economic development must not be achieved through the violation of fundamental rights, nor on the backs of people increasingly made vulnerable by galloping inflation.
Are the new supplies really necessary?
For the CEO of Hydro-Québec, the rate increases are also justified by the increase in electricity production. Many figures have circulated on this subject. In 2022, Hydro-Québec estimated Quebec’s additional energy needs at 100 terawatt-hours (TWh) to achieve carbon neutrality by 2050. The Minister of Energy then suggested that the requirements could reach 150 TWh, then 200 TWh, double the current production, nothing less!
Before embarking on costly supply projects, should there not be a reason to think about measures that promote the reduction of energy demands? Rather than building new dams or reopening an old nuclear power plant, why not establish massive programs to insulate housing, develop public transportation, implement energy efficiency measures in businesses, etc.? ?
It is not an energy transition plan that the government seems to have, but rather an economic development plan and it is the population who will pay the price. Firstly because we will not achieve our greenhouse gas reduction targets and secondly because we will pay for these political choices through our electricity bills.
Political targets
These targets are therefore the responsibility of the State and not that of Hydro-Québec’s residential customers. Reducing greenhouse gases is beneficial for all of society. The energy transition must be financed by the entire population and not only by Hydro-Québec’s residential consumers.
Electricity rates are the same for everyone, regardless of income. Using electricity rates to finance the transition is a form of regressive taxation (unlike taxes). It also means placing an unfair proportion of the costs on the most vulnerable households.
It is important to remember that in Quebec, one person in seven experiences difficulty in having the energy necessary in their home to satisfy their basic needs or achieves this to the detriment of other essential needs, such as eating. The government must stop turning a blind eye to the problems of access to energy experienced by hundreds of thousands of people in Quebec.
Hydro-Québec’s primary mission, which was to provide electricity to Quebecers at a fair price, is well and truly behind us. If anyone was still wondering who owns Hydro-Québec, they now have their answer: it belongs to the government which, far from protecting the population, acts as a speculator of a luxury product!
*This letter is supported by the following groups:
Cooperative Home Economics Association (ACEF) of Eastern Montreal / Cooperative Home Economics Association (ACEF) of South-West Montreal / Cooperative Home Economics Association (ACEF) Lanaudière / Coalition of Consumer Associations of Quebec (CACQ) / Coalition against poverty of La Petite-Patrie Housing Committee of Petite Patrie / Greenpeace Canada / Le Groupe l’Entre-Gens / L’Écho des femmes de la Petite-Patrie / Grouping of environmental energy organizations / Mouvement Action- Unemployment (MAC) of Montreal / Regional table of voluntary popular education organizations (TROVEP) of Montreal / Fondation Rivières / Montreal for all