Quebec’s Energy Board Approves Rate Increase for Hydro-Québec Clients

Residential and commercial clients of Hydro-Québec will soon face a 3.6 per cent rate increase, according to a recent announcement by Quebec’s energy board. This decision, set to take effect on April 1, goes against the three per cent cap promised by Premier François Legault last year.

The Régie de l’énergie attributed the rate hike to the growth in demand and inflation. Despite Premier Legault’s strong opposition to the increase, stating that it was “out of the question,” he expressed his commitment to finding a solution in collaboration with government officials and Hydro-Québec, which is also challenging the decision.

Hydro-Québec announced its intention to appeal the ruling, arguing that it does not align with the province’s current social, economic, and political landscape. Industrial clients will experience a more modest rate increase of 1.7 per cent, significantly lower than the 3.3 per cent hike initially requested by the utility.

The energy board justified its decision by highlighting a projected $60 million shortfall in 2025 if a three per cent cap on residential tariffs were to be enforced. It pointed out that Legault’s commitment to the cap was informal, as it was never officially mandated through a decree.

During hearings held in December 2024, various stakeholder groups, including consumer advocates like Option consommateurs, raised concerns about the long-term implications of the rate increase. There are fears that the shortfall caused by the cap could lead to even higher rate hikes in the future.

With the approved rate increase, the energy board estimates that the monthly energy bill for a five-room dwelling will rise by $2.90, slightly higher than the $2.42 increase proposed by Hydro-Québec. This adjustment comes at a time when the public utility is making significant investments to double its generating capacity by 2050, prompting worries about the possibility of energy rates doubling over the next decade.

As Quebec residents brace themselves for higher electricity costs, the ongoing debate between government officials, energy regulators, and Hydro-Québec underscores the complex challenges facing the province’s energy sector.