Hydro-Quebec’s planned rate increases took effect on Tuesday for residential, commercial and industrial customers, and one taxpayer group says the timing couldn’t be worse.
A spokesperson for the Canadian Taxpayers Federation (CTF) said in an interview that with the ongoing U.S. tariff war and Quebec’s growing deficit, the rate hike will further strain consumers and businesses alike.
“It’s definitely going to affect people directly on their electricity bills and their heating bills. We’re talking about an average of $4 to $6 maybe a month, in addition to what they’re currently paying,” said Nicolas Gagnon, the Quebec director of the CTF.
Gagnon noted that the three per cent increase will amount to approximately $60 more per year for residential consumers.
Last month, the CAQ government blocked a proposed 3.6 per cent increase for residential customers that had been approved by the Régie de l’énergie.
“As long as I am premier, residential rates will not increase by more than three per cent annually. I will find a solution with the government and Hydro-Quebec,” said Quebec Premier François Legault on social media in response to the energy board’s decision.
Gagnon said the CTF is “thankful” that the residential hike was capped, but he added that the government should have taken a different approach.
“The fact that Hydro-Quebec has calculated that because of the capping of the increase, there will be a loss of approximately $60 million in their coffers is almost ironic considering the fact that they gave themselves over $73 million over the last two years in bonus for their execs,” Gagnon pointed out.
“So, I think that there’s some savings that Hydro-Quebec could be able to pick somewhere, in some other places, in order to ensure that consumers would keep the rate to the best price there is on the market.”
Hydro-Quebec had applied for a 3.9 per cent increase in rates for commercial and institutional customers, but the energy board set it at 3.6 per cent, while the hike for large-power industrial customers is at 1.7 per cent.
With files from the Canadian Press.
