Hydro-Québec rates: Energy minister forecasts ‘significant increases’ over next decade

There will be “significant increases” in Hydro-Québec rates in the next five to 10 years, according to Energy Minister Pierre Fitzgibbon, who added there will be no “rate shock” in the short term.

“In five years, in 10 years, yes, there will be significant increases,” said Fitzgibbon as he entered cabinet Wednesday morning. “The question at that point will be how to allocate investment costs: industrial, commercial and residential. It’s a big debate.”

Hydro-Québec’s 2035 Action Plan calls for investments of $155-185 billion between now and 2035 to increase electricity production and contribute to the decarbonization of Quebec.

A Union des consommateurs report published Wednesday sounds the alarm, claiming there could be “a rate shock for residential electricity services over a 10-year horizon” due to Hydro-Québec’s growing needs.

“According to Union des consommateurs projections, electricity rates could rise by between 5.6 per cent and nine per cent annually as early as 2028, far exceeding the three per cent promised by the government,” the report states.

According to Minister Fitzgibbon, it is “premature” to come to such conclusions. “In the next one to five years, there will be no rate shock, because spending will be gradual,” he assured.

Premier François Legault also sought to reassure Quebecers with a message on the social network X on Wednesday morning.

“As long as I’m premier, Quebecers’ rates won’t go up by more than three per cent a year, and Quebecers will continue to have the lowest rates in North America. But Quebec will make a profit with companies that are increasingly looking for clean energy,” he wrote.

–This report by La Presse Canadienne was translated by CityNews