The imminent exit from fossil fuels offers a golden opportunity to transform all of Québec’s energy production into a true public service, and thereby reconnect with the founding principles of Hydro-Québec. Let us briefly recall the context that preceded the creation of the state corporation: faced with the control of a few companies, the cost of electricity was high and variable and access to this service was reserved for profitable regions. The first takeover of the sector by the government of Adélard Godbout, in 1944, made it possible to democratize access to electricity while transforming profits into revenue for the State.
Why privatize the development of renewable energies?
The Quebec government is increasingly talking about privatization when it comes to energy. Pierre Fitzgibbon even said on May 31 that the private sector is, in his view, better than the State. This is a startling statement from a minister with so much public power.
At the same time, a new study by the Montreal Economic Institute has hit, once again, on the nail of privatization.
This two-page memo, which contains neither rigorous methodology nor objective comparison of data, lists the benefits of opening up to the private sector, while being careful not to indicate how Quebecers would gain from it.
The author of this opinion relies in particular on Innergex’s desire to establish itself in the private renewable energy sector in Quebec. But guess what? Innergex is 20% owned by the Government of Quebec and 6.5% by the Caisse de dépôt et placement du Québec 2. No less than 43% of its assets belong to public institutions. What’s more, it sells part of its energy to Hydro-Québec, which then probably resells it at a loss. This scheme is nothing new: public institutions directly finance private companies, which are bound to become competitors of the public and to weaken it.
Imagine that, on the pretext that they obtain better results, the government decides to finance more private schools, to the detriment of public schools. Worse still, imagine he asks public schools to fund private because of his better performance. What would happen to our public schools? The quality gap between public and private schools would only increase, to the detriment of those who cannot afford to send their children to private schools. Over time, public schools would be neglected, causing harm to the entire population. In fact, this is already largely what we are experiencing today. Well, so will energy.
Rather than working towards its own depreciation, the Government of Quebec should direct its efforts and resources towards the creation of infrastructures and regulations aimed at reducing our energy consumption.
Examples include the extensive development of urban and interregional public transport networks or the prohibition of energy-intensive activities with low added value (eg cryptocurrency mining). Québec is currently one of the largest energy consumers in the world, and its exceptional endowment of clean energy obliges us to set an example on the international scene.
Let’s stop taking it for granted that we absolutely have to find 100 terawatt hours or more of additional energy.
What we really need is to think about how we can reduce our energy consumption through ambitious public policies that will improve the quality of life of all Quebecers.
While the government has clearly expressed its intention to change the Hydro-Québec Act as of the fall, it is more necessary than ever to defend the public nature of electricity production.
The signals sent so far by the Legault government suggest deregulation of the sector and greater openness to the private sector. The prevailing discourse testifies to a disguised desire to make Hydro-Québec, and therefore all Quebecers, bear the costs of these private developments.
There are currently predators in Hydro-Québec’s yard.
Let’s stand up and protect our social gains!