Quebec’s energy board has announced that residential Hydro-Québec clients will see the same 3.6 per cent rate increase as its commercial clients, despite a three per cent cap promised by the premier last year.
The Régie de l’énergie says the increase — set to go in effect April 1 — is due to the growth in demand, and inflation.
Premier François Legault said in a post to social media that the increase was “out of the question,” adding that he’ll work on a solution with members of government and Hydro-Québec, who for its part is also contesting the hike.
“As long as I am premier residential tariffs will not increase by more than three per cent annually,” Legault wrote.
In a news release, Hydro-Québec announced it will appeal the decision, saying it’s not coherent with the province’s current social, economic and political context.
Industrial clients will see their rates go up by 1.7 per cent, which is almost half the 3.3 rate increase Hydro-Québec had asked for.
In its decision, the energy board says that a three per cent cap on residential tariffs will create a $60 million shortfall in 2025. It calls Legault’s promise “informal” given that the government never embedded the cap in a decree.
The energy board’s decision follows a series of hearings it held in early December 2024, where it heard from consumer, energy and business interest groups.
Notably, consumer watchdog Option consommateurs said the shortfall created by the cap might lead to bigger rate increases down the line.
With the rate increase, the board estimates the energy bill for a five-room dwelling will go up by $2,90 per month versus $2,42 at Hydro-Québec’s proposed rate.
The public utility is investing billions of dollars over the next few years to double its generating capacity by 2050.
This had led to concerns that energy rates could double in the next ten years.
