The secret electricity rebates the government is giving to dozens of major companies have cost Quebecers more than $520 million in the last three years.
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These discounts, which can reach 20% of the electricity bills of the companies that benefit from them, were introduced in 2016 by the Couillard government. They apply to tariff L, which is only available to large consumers and is already significantly cheaper (approx. 5.5 cents/kWh) than the tariff for private individuals (approx. 7.8 cents/kWh).
In November 2019, Finance Secretary Eric Girard extended the program until the end of 2023. Companies therefore have until December 31 to submit an application, but can receive the rebates until the end of 2032.
To benefit from the program, companies must commit to investing in their factories, particularly to increase their productivity, start new production or reduce their greenhouse gas emissions.
Confidential
Over the past three years, the Financial Assistance for Investment Program (PAFI) has cost Quebec $521.7 million, including $179 million last year. According to Radio-Canada, 82 of Hydro-Québec’s approximately 165 industrial customers will benefit from this. However, the government refuses to reveal their identities.
So we don’t know whether Northvolt, which recently announced plans to build a battery cell mega-factory on Montreal’s south shore, largely subsidized by Quebec and Ottawa, is eligible for the rebates.
On the other hand, the Quebec company Nouveau Monde Graphite, which plans to build a mine and a factory, recently announced that it had received confirmation that it had qualified for the PAFI.
Already renewed again?
On Tuesday, Mr. Girard would not say whether he would extend the program again.
“We will announce our decision with the update [économique]», scheduled for November 7, he explained in Quebec.
But according to Prime Minister François Legault, that will not be the case.
“The economics minister is in the process of abolishing it [le PAFI] to ensure that in future contracts the benefits to Quebecers are always greater than the costs to Quebecers,” he told the National Assembly.
A few months ago, the multinationals ArcelorMittal and Rayonier Advanced Material asked the government to extend the PAFI, La Presse revealed in March.
However, experts in the field are surprised that such rebates still exist as major companies around the world compete for renewable energy to decarbonize their operations. Especially since there is a threat of an electricity shortage in Quebec.
“Even in 2019, we knew that the energy balance would get worse and that we wouldn’t do this anymore [beaucoup d’électricité disponible] in 2025 or 2027,” recalls Jean-Pierre Finet, energy analyst at the Grouping of Environmental Energy Organizations.
“From the point of view of the value of our resource and its scarcity, it is not relevant,” adds Jean-François Blain, independent analyst “The energy dollarama that Sophie Brochu feared so much.” [ex-PDG d’Hydro-Québec] And who declared his departure is completely open, he adds. An offer [aux consommateurs industriels] Prices that are almost impossible to find anywhere else in the world.”
– With Pascal Dugas-Bourdon
Electricity price discounts granted to large industrialists
2022-2023: $178.9 million
2021-2022: $186.1 million
2020-2021: $156.7 million
Total: $521.7 million
Source: Quebec Ministry of Finance
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