Residential rates at Hydro-Québec will never increase by more than 3% per year, Prime Minister François Legault promised Wednesday.
In an exchange with the co-spokesperson for Québec solidaire, Gabriel Nadeau-Dubois, the head of government declared that major projects in the battery sector will have “no impact” on residential electricity rates. “In the future, rate increases at Hydro-Québec will never exceed inflation or 3%, whichever is less,” he also assured.
He criticized the PQ and Liberal governments for increasing prices beyond the rate of inflation. “The CAQ government will never do that,” vowed the Prime Minister.
Mr. Legault was pressed for questions following the publication of a Radio-Canada text reporting that the big boss of Hydro-Québec, Michael Sabia, believed that it was necessary to increase electricity rates since the period of surplus is now gone.
An adjustment in 2025?
After Mr. Legault’s exit, the Minister of Economy, Innovation and Energy, Pierre Fitzgibbon, declared that legislative changes would be necessary to realize the Prime Minister’s wishes.
Bill 34 adopted by the CAQ in 2019 on the establishment of electricity distribution rates provides for a reassessment of rates every five years by the Energy Authority, recalled the elected official. “So, technically, if we want the 3% to remain permanently, we have to change the law,” he said.
“Mr. Legault mentioned his political intention [de plafonner les tarifs de manière permanente]. At the legislative level, something must be done. If we do nothing, there will be an adjustment [en 2025] », added Minister Fitzgibbon.
Around 9 a.m. Wednesday morning, before the Prime Minister’s statement, he refused to say what would happen to Hydro-Québec’s rates when they are revised in 2025. “I am asked if there will be an increase in 2025, what do you want me to say? » he told the parliamentary press. There will “not necessarily” be an increase at this time, Mr. Fitzgibbon also declared.
A little before noon, the minister returned to journalists with a clear forecast. “The technicality is that in 2025, if we do nothing, prices will increase,” he agreed.
Mr. Fitzgibbon also declared that several options were being studied at the moment, in particular those of modulating prices according to household income or the use of electricity. “We are a government that is concerned about the cost for vulnerable people, the middle class, so we will be consistent with what we have done since 2018,” he assured.