In October, the Minister of Energy confirmed that Hydro-Québec’s rate increase would be at least 2.6% in 2022. This is double that of last year! At the same time, François Legault announced that he would present a minibudget in November with the objective of offering Quebecers financial relief in response to the enormous increase in the cost of living. We therefore have, on the one hand, a minister who says he has no intention of slowing down the increase in Hydro-Québec’s tariffs and, on the other, a prime minister who asserts that the “best way to help Quebeckers have to face the cost of housing, the cost of groceries, the cost of just about anything that’s going up is putting money back in the pockets of Quebeckers ”. How can the CAQ government not see this as a flagrant contradiction?
Does the government have a crystal ball to predict inflation?
As a reminder, since 2019, Hydro-Québec’s rates are no longer subject to an annual review by the Régie de l’énergie. They are now simply aligning with inflation. When the law aimed at simplifying the process for establishing electricity distribution rates came into force, all stakeholders (with the exception of Hydro-Québec) expressed concerns and expressed their disagreements. And we are talking about a series of quite diverse actors: large companies, SMEs, employers, consumer groups, opposition parties and many others. Despite everything, the minister persists. For him, this new way of doing things is positive because it gives predictability […]
A reform without effect
Faced with this considerable increase in electricity tariffs which will contribute to impoverishing Quebecers, the Minister should take note of the fact that his reform has not had the desired effects and return to a calculation method that takes into account the real costs of production and distribution of electricity.
Minister Julien refuses to intervene by freezing prices or even limiting the increase. “We are not going to interfere politically to change that,” he said. Why ? By changing the way tariffs are set, it has already largely interfered politically. Could it be because increasing electricity rates, unlike increasing prices for other products and services, is good for the government’s budget? Remember that each year, Hydro-Québec gives 75% of its profits to the government. Contrary to what Sophie Brochu, CEO of Hydro-Québec, said during her last appearance on the show Everybody talks about it, Hydro-Quebec no longer belongs to Quebecers. It belongs to the government, which is the sole shareholder. And who doesn’t mind using the electricity bill to finance themselves. […]
By not limiting the increase in electricity rates, the government is prioritizing its own finances to the detriment of those of Quebec households. Every year, many people have difficulty paying their bills. In 2018, Hydro-Québec entered into nearly 374,000 payment agreements with its residential customers and carried out nearly 45,000 service interruptions to its collection customers. In a context of extreme inflation, the costs of housing and the basket of groceries are increasingly unaffordable, this new increase makes us fear the worst. In 2022, how many people will have to choose between eating or paying the electricity bill? Dress their children or warm themselves?
The government must stop saying one thing and its opposite. If he really wants to put money back in the pockets of Quebeckers, he must intervene and limit the increase in Hydro-Quebec rates. He must finally recognize that electricity is not a luxury. It is an essential service that the population cannot do without.