Montreal, March 12, 2025- Option consommateurs believes that it is essential to depoliticize the setting of electricity rates and to respect the decisions made by the Régie de l'Énergie to avoid major increases in the future, despite the opposition of Hydro-Québec and the government.
The consumer rights organization is reacting to Hydro-Québec's recent announcement that it will appeal the Régie de l'Énergie's decision to increase rates to 3.6% on April 1. The Régie refused to cap the increase in residential electricity rates at 3%, as the utility would have wanted and as the government had promised. Premier François Legault also mentioned on social networks that he was looking for solutions. "As long as I am Prime Minister, residential rates will not increase by more than 3% annually," he said.
Option consommateurs believes, however, that the arbitrary capping of rates compromises Hydro-Québec's financing and runs counter to the current regulatory framework, which allows the Régie to set electricity rates based on costs of service for the year 2025-2026.The cap would result in an estimated $60 million shortfall for the utility by 2025, a deficit that would continue to accumulate until the next rate case..
"It is essential to depoliticize the setting of electricity rates. This process must be based on the regulatory principles established by the Régie de l'énergie, which guarantee Hydro-Québec's ability to recover the funds it needs for its operations," says Christian Corbeil, Executive Director ofOption consommateurs. A long-term vision is needed to avoid even higher increases in the future, while putting in place appropriate support measures for the most vulnerable households.
In the current context, Hydro-Québec must invest heavily in its network. Network maintenance, including vegetation control work, is essential to ensure service quality and avoid the numerous outages that have occurred in recent years. In addition, projects aimed at increasing energy production, in line with the objectives of Action Plan 2035, are also contributing to higher service costs, with inevitable repercussions on electricity rates.
The rate increase will not affect all consumers equally. The 3.6% rate applies only to the two price brackets for electricity consumed. At the request ofOption consommateurs, network access charges - the fixed amount paid by each customer to benefit from electricity service - will remain unchanged. This mitigates the impact of the rate increase on customers' bills, which will vary between 3% and 3.3% for a household consuming between 1,000 and 2,000 kWh per month. By way of comparison, a 5 ½ dwelling of 68 m² (740 ft²) consumes an average of 966 kWh per month, while a single-family home of 158 m² (1,701 ft²) averages a monthly consumption of 2,207 kWh.
"It should be remembered that rate increases in excess of 3% are commonplace in other comparable jurisdictions. There are more progressive mechanisms to protect consumers than arbitrary rate caps," stresses Carlos Castiblanco, economist at Option consommateurs.
Option consommateurs proposes the introduction of a government-administered tax credit specifically for residential households. Eligibility criteria could be based on those of the solidarity tax credit, thus ensuring adequate support for low- and moderate-income households faced with rate hikes.
AboutOption consommateurs
Option consommateurs is a non-profit association whose mission is to defend the rights and interests of consumers. It focuses on issues related to personal finances, business practices, financial services, privacy, energy, debt and access to justice.
-30-
For more information or an interview :
Marie-Ève Dumont, Director of Communications
514-777-6133
