(Quebec) François Legault undertakes to “never” increase electricity rates beyond inflation or a ceiling of 3% and could enshrine it in law. He was reacting to the broadcast of a video by Hydro-Québec CEO Michael Sabia, who anticipated an increase in the cost of electricity in the coming years.
“I want to be very clear. Unlike the Liberal Party and Parti Québécois governments, which both increased electricity rates by 4-5% while inflation was at 2%, we will never do that. We will never do that. It couldn’t be clearer,” the Prime Minister said in the chamber on Wednesday.
He was closely followed by the parliamentary leader of Québec solidaire, Gabriel Nadeau-Dubois, who asked him to commit “to ensuring that Quebecers’ electricity rates do not directly or indirectly subsidize battery projects”.
François Legault retorted that “there is no question of increasing them”.
I want to reassure all Quebecers, what we are doing with Northvolt, the battery, it will pay off, it will have no impact on residential rates, and I continue to think that we have taken the right decision.
François Legault
In the morning, Radio-Canada revealed that the CEO of the state-owned company Michael Sabia believes that Hydro-Québec’s rates should be increased since electricity has become a “precious asset” and that the cost of new supplies will be at the rise. The construction of new hydroelectric power stations, or the erection of wind turbine fields, for example, produces more expensive energy than that currently consumed by Quebecers.
Mr. Sabia made the comments during an online meeting with employees online at the end of September. He believes that the increase in electricity production will have an impact on prices. “Will there be a trend of an increase [de tarifs] ? I think so,” reports Radio-Canada.
Tariff shock
To avoid this “price shock”, François Legault therefore plans to make permanent the law which caps electricity prices at 3% or inflation until 2025.
In the morning, Energy Minister Pierre Fitzgibbon was less categorical than the Prime Minister. He stressed that for the moment, on this date, the Energy Authority will have to carry out a study which will allow it to determine what the rates will be.
“The authority is working to review the cost of service, and based on that, we often have rates that will increase. Mr. Sabia indicated that service costs are likely to increase. So the management will perhaps decide that there may be additional costs,” he said. “We decided that for residential there will be a ceiling until 2025,” he added.
Opposition parties have denounced the idea of raising electricity prices, even if it could encourage consumers to reduce their energy consumption, and free up energy for other needs.