Montreal, December 7, 2022 - Option consommateurs calls the bill to limit electricity rate increases for residential customers "nonsense", since it will only contribute to inflation and allow Hydro-Québec to charge far more than necessary for this essential service.
Bill 2, presented by Pierre Fitzgibbon, Minister of the Economy, Innovation and Energy, only caps rates paid by consumers. Rates for businesses and industries, on the other hand, will be indexed to inflation, i.e., a 6.4% increase. This substantial increase will necessarily be passed on, in whole or in part, to consumers when they purchase goods or services.
"They say they want to protect Quebec households against inflation, but in the end, it's the consumers who will have to bear these cost increases," deplores Sylvie De Bellefeuille, lawyer, budget and legal advisor.
A disconnected bill
By proposing to limit residential rates to the lower of the inflation rate or the upper limit of the Bank of Canada's inflation control range, this bill perpetuates the problem that electricity rates do not reflect Hydro-Québec's real needs. What's more, it means that the electricity rates Quebecers will have to pay will also depend on the monetary policy of Canada's central bank.
"Setting electricity rates based on external factors and the vagaries of the economy makes no sense whatsoever. The government is exposing Quebec consumers to rate shocks while allowing the Crown corporation to make unreasonable profits. The government must stop seeing Hydro-Québec as the government's cash cow," said Christian Corbeil, General Manager ofOption consommateurs.
If the government truly wishes to reduce the impact of inflation on consumers' wallets, it must give the Régie de l'énergie back the power to set rates annually, to ensure that Quebecers pay the right price for their electricity.
About usOption 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 finance, business practices, financial services, privacy, energy, debt and access to justice.
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Marie-Ève Dumont, Communications Consultant
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