With fears of a recession on the horizon, the Minister of Economy and Energy, Pierre Fitzgibbon, “stays on the alert” and opens the door to assistance for small businesses (SMEs), if necessary. However, their electricity rates will increase by 6.5% on Saturday, as expected.
Rates for Hydro-Québec business customers are increasing by 6.5% on Saturday to take inflation into account. The increase is criticized by the Canadian Federation of Independent Business (CFIB), which is asking the government to cap the indexation of electricity rates at 3% for SMEs and households.
Electricity is only one lever among many others on which the government can intervene, responds Mr. Fitzgibbon, on the sidelines of an announcement in Montreal on Friday. “You have to look at the work as a whole. »
The minister says he remains “on the lookout” in a context of economic uncertainty. “Recession or not, we are not sure yet. You have to be awake. Me, I watch the borrowing rate a lot. I look at SMEs that are having difficulties. There are no programs yet that we want to announce, but we are aware, we are on the lookout. »
The Minister does not believe that electricity tariffs are the best way to intervene.
Electricity rates: I don’t think we’re going to go there. Honestly, we still have the lowest rates in Canada. However, there are other mechanisms that can be put in place, if necessary.
Pierre Fitzgibbon, Minister of Economy and Energy
At the CFIB, there are concerns that the increase in rates will weaken the economy at a time when many SMEs are emerging from the pandemic. “It will increase prices for citizens [des biens vendus dans les commerces] and weaken small businesses that cannot make economies of scale and that receive cost increases from everywhere,” lamented its Quebec vice-president, François Vincent, on the sidelines of a parliamentary committee on the subject at the end of January.
The association points out that this is the largest increase in the electricity bill since it began monitoring tariffs in 1998.
A helping hand from the federal government
Asked about the federal budget, Mr. Fitzgibbon said he was “pleasantly surprised” by the aid promised for clean energies, in particular a refundable tax credit of 15% for the projects of electricity producers to which Hydro-Québec would have access. .
“I think Hydro-Quebec will benefit from it. It will reduce the cost of electricity. Ultimately, everyone will benefit. »
The Trudeau government unveiled its response to theInflation Reduction Act (IRA) of the United States with an offensive of 80 billion over ten years. In addition to the credit for new electricity generation projects, other credits are allocated for the adoption or manufacture of clean technology, the production of hydrogen and carbon capture. “It will clearly encourage investors, who perhaps would not have come to Canada,” said Mr. Fitzgibbon.