The Legault government’s energy reform will cost taxpayers dearly, and there is no guarantee that it will achieve our climate objectives, experts fear.
Jean-François Blain and Bertrand Schepper, from the Institute for Socioeconomic Research and Information (IRIS), looked at Bill 69, now led by the new Minister of Economy and Energy, Christine Fréchette.
In the brief they will present to him next week, they claim that the government’s plan to massively increase energy production by 2035 will lead to a tariff increase of 65 to 75%.
Let us recall that Hydro-Québec plans investments of 155 to 185 billion dollars to double its production, create wealth and decarbonize the economy.
Growth to decarbonize?
This plan is based on a “pharaonic” growth in consumption of 56 TWh in 11 years, whereas it has only increased by 13 TWh over the last 20 years, note Messrs Blain and Schepper.
This “will result in at least cumulative tariff increases of 65 to 75 percent over 11 years, or 5 to 6 percent per year, and will unnecessarily impoverish households and businesses,” they write in their report.
Premier François Legault has repeatedly stated that as long as he is in office, he will cap residential rate increases at 3%. However, rates for businesses will increase.
An aid fund would be set up to compensate Hydro-Québec for losses linked to the freezing of residential rates, which suggests that all taxpayers would pay the bill.
Furthermore, according to Messrs. Blain and Schepper, Bill 69 does not guarantee the decarbonization of the economy, because it is not accompanied by any plan to reduce the consumption of oil and gas products.
They note that the former Minister of Economy and Energy, Pierre Fitzgibbon, has already attributed a third of the planned growth (+- 2500 MW) to industrial projects that will not contribute to decarbonization.
“The approach favored by the government […] consists of using an alleged energy transition as a pretext to relaunch industrial investment at the expense of the community,” they accuse in their brief.
An anti-democratic bill, according to the FTQ
For its part, the Fédération des travailleurs et travailleuses du Québec (FTQ) believes that Bill 69 presents “significant risks for the democratic governance of energy resources.”
The union notes, among other things, that the legislative text “centralises excessive powers within the Ministry of Economy, to the detriment of a balanced and concerted approach.”
With this bill, the Legault government is neglecting environmental and biodiversity issues, instead favouring purely economic decisions, according to him.
The FTQ is therefore calling for the suspension of the study of the bill and the establishment of an “Integrated Energy Resources Management Plan” before any resumption of discussions.
“The management of energy resources cannot be left to chance or subject to hasty decisions,” she argues in her thesis.
“The choices we make today will define the future not only of our economy, but also of our environment, our quality of life and our place on the world stage.”
Six days of consultations
Regardless, the government will move forward by holding six days of special consultations, starting next Tuesday.
Several dozen groups, including Hydro-Québec, Énergir and Option consommateurs, to name just a few, will parade in front of Ms. Fréchette to express their points of view.
Newly sworn in on Thursday, Minister Christine Fréchette promised to do her homework and “arrive prepared to welcome the groups on this very important bill.”