Under a CAQ government, increases in residential electricity tariffs will always be capped at 3%, vows François Legault. However, his deputy energy minister is more nuanced.
The prime minister met the new head of Hydro-Québec, Michael Sabia, on Monday. He says he has put his cards on the table.
“I couldn’t have been clearer. “If we look at housing prices in Quebec, there is no question of increasing them by more than the lower inflation rate or 3%,” François Legault promised on Wednesday. Hydro-Québec’s tariff increases will never exceed inflation or 3%, whichever is lower, contrary to what the Liberal Party and the Parti Québécois have done in the past, (…) the CAQ Government will never do that!”
At the same time, the Prime Minister assures that the Swedish company Northvolt’s mega-project, a battery factory for electric vehicles in Montérégie, will have no impact on prices for citizens.
“I want to reassure all Quebecers that what we are doing with Northvolt and the battery will pay off and will not have an impact on residential rates.”
Radio-Canada on Wednesday revealed comments made by Hydro-Québec’s CEO during a Zoom meeting with employees of the state-owned company in September. He states that the state-owned company’s tariffs should be increased in the coming years due to the higher cost of new supplies.
François Legault replied that Hydro-Québec belongs 100% to the Government of Quebec and therefore to Quebecers.
After 2025 we’ll see!, says Fitzgibbon
However, his super minister for economy and energy was more nuanced about what happened after March 31, 2025, the date on which the law limiting hydropower tariffs to 3% ends.
“No further increase is planned before March 31, 2025, after that we will see!” announced Pierre Fitzgibbon in a press conference in the National Assembly. He made it clear that his government had no intention of pushing back the deadline for the law. “Law 2 will be in force until 2025 and nothing will change.”
The minister recalled that the Régie de l’énergie is responsible for pricing and not Hydro-Québec.
“The Régie works to review the costs of services and on this basis we often have higher tariffs. Mr Sabia said that the cost of services is likely to increase, so the Régie may decide that additional costs may apply,” he added.
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