Montreal, March 14, 2022 - The Canadian Federation of Independent Business (CFIB), together with Option consommateurs and the Association québécoise des consommateurs industriels d'électricité (AQCIE), are calling for a freeze on Hydro-Québec rates, until the company undergoes a rigorous exercise before the Régie de l'énergie to avoid further burdening consumers and businesses already hard hit by cost increases.
These increases are currently at levels not seen in over 15 years, with inflation projected at over 5% for the coming year. Hydro-Québec, meanwhile, has posted record profits of $3.5 billion for 2021, and is set to increase its general rates in line with inflation for 2022 and 2023.
For the year 2023, the state-owned company would therefore be taking an additional $600 million from the pockets of Quebec consumers. It is inconceivable that the Quebec government would not call on the Régie de l'énergie to ensure that these consumers do not pay more than necessary to the monopoly that is Hydro-Québec. In the current context of high inflation, if the government is truly looking for effective solutions within its reach to reduce the impact of inflation on citizens and businesses, it must consider this avenue.
One increase too many for households
With rising inflation having a major impact on basic expenses such as food, gas and housing, such an increase in electricity rates is likely to put many Quebec households in a difficult financial situation. This increase will be particularly hard on low-income households, who often live in poorly insulated dwellings and have few means of reducing their energy consumption.
"By removing the Régie de l'énergie's power to set Hydro-Québec's annual rates, and instead subjecting them to the vagaries of the economy, the government is exposing Québec consumers to rate shocks, while allowing the utility to make unreasonable profits," said Christian Corbeil, General Manager of Hydro-Québec.Option consommateurs
SMEs take another hit
The average increase for a small convenience store would be around $200, and for the commercial sector as a whole, the average additional bill would be $518. These increases come at a time when 74% of Quebec SMEs say that their biggest challenge in 2022 will be to cope with rising costs due to inflation. Because of the pandemic, Quebec SMEs have also taken on an average debt of $100,000. Hydro-Québec should play a strategic role in mitigating the impact of inflation on small businesses.
"At a time when our SMEs are recovering from several waves of economic restrictions that have almost finished them off, they are being hit hard by high inflation. It is in this context that Hydro-Québec is going to take more money out of the already empty pockets of SME managers. The Minister of Energy and Natural Resources needs to understand that stifling our small businesses in this way will not sustain our economy in the short, medium or long term," says François Vincent, CFIB's Vice-President for Quebec.
Industrial companies deplore loss of transparency in tariff setting
Already, when Bill 34 was passed under a gag order in 2019, organizations representing Hydro-Québec customers expressed concern that, by removing important powers from the Régie de l'énergie, the Quebec government would deprive all customers of a rigorous, independent electricity rate-setting process to limit the appetite of the electricity distribution monopoly. Rates for Hydro-Québec's large industrial customers have increased for the two years 2021-2022 alone, five times more than the increase for the four years prior to the adoption of this legislation, which exempts Hydro-Québec's rates from annual review by the Régie de l'énergie.
"Our fears have now been confirmed. Hydro-Québec charges more than it needs from its Quebec customers to provide electricity distribution service. With a general rate increase of at least 5.1% anticipated as of April1, 2023, it's a reminder of the need for and essential role played by the Régie de l'énergie in promoting transparency in the annual electricity rate-setting process," said Jocelyn B. Allard, President of the Association québécoise des consommateurs industriels d'énergie. Allard, President of the Association québécoise des consommateurs industriels d'électricité.
About CFIB
CFIB (Canadian Federation of Independent Business) is the country's largest SME association, with 95,000 members in all sectors and regions. It aims to increase SMEs' chances of success by defending their interests with governments, providing personalized resources and offering exclusive savings. Visit fcei.ca to find out more.
About Option consommateurs
Option consommateurs is a not-for-profit association whose mission is to defend the rights and interests of consumers. It is closely involved in issues related to personal finance, business practices, financial services, protection of personal information, energy, health and agri-food.
About AQCIE
The AQCIE (Association québécoise des consommateurs industriels d'électricité), founded in 1981, represents the interests of the largest industrial consumers of electricity in Quebec. These industries, well established in the regions of Quebec, consume more than a third of the electricity sold by Hydro-Québec Distribution, corresponding to a value of nearly three billion dollars a year.
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For further information, please contact
Maud Larivière, Press Attaché, CFIB
Tel.: 514 861-3234 ext. 1808 | Cell. : 514 817-0228
Marie-Ève Dumont, Senior Communications Advisor, Option consommateurs
Tel.: 514-777-6133
Jocelyn B. Allard, President of AQCIE
Tel: 514 350-5496. Cell. : 514 910-8027
