For the second year in a row, SMEs in Quebec will be affected by a significant increase in their electricity bills, unlike large manufacturers.
• Also read: Low electricity tariffs from hydropower, except for business customers
• Also read: Hydro-Québec has planned annual residential property rate increases of no more than 3% until 2035
Hydro-Québec has set the increase in commercial rates at 5.1%, which will take effect on April 1. Roughly speaking, this is inflation, which is calculated between 2021 and 2022 and between 2022 and 2023.
Keep in mind that SMEs have already experienced a 6.4% increase in electricity prices in April 2023.
“Milk the cow”
“We are once again reaching into the empty pockets of companies that are already weakened by high levels of debt,” complains François Vincent, vice-president of the Canadian Federation of Independent Business (CFIB).
“Hydro-Québec’s cash cow is small and medium-sized businesses,” he adds.
François Vincent with kind permission
The increase is significantly lower for large industrial consumers (set L). Hydro proposes to set this value at 3.3% on April 1, which is 65% of the inflation rate of 5.1%. Last year the increase in rate L reached 4.2%.
In a document filed with the Régie de l'énergie, the state-owned company claims that a smaller increase in tariff L “will allow it to maintain its competitiveness”.
3% increase for residential properties
For residential customers, electricity tariffs will increase by 3% on April 1, the same increase as last year. This is the maximum increase established by a law of the Legault government until March 31, 2025.
The CFIB estimates that SMEs paid $368 million more for their electricity in two years than if commercial rates had been capped at 3%.
Like the CFEI, the Association of Hoteliers of Quebec (AHQ), the Association Restauration Québec (ARQ) and the ACEF of Quebec are convinced that the smaller increase in tariff L does not contribute to maintaining but rather improving the competitiveness of this hotel .
According to them, the L set should be fully indexed.
On the other hand, the Quebec Association of Industrial Electricity Users is calling for the increase in tariff L to be limited to 1.6%, while the Quebec Forest Industry Council is calling for an increase of just under 0.4%.
Can you share information about this story?
Write to us or call us directly at 1 800-63SCOOP.