1699090247 Future tariff increases are coming for major industries says Fitzgibbon

Future tariff increases are coming for major industries, says Fitzgibbon

“Prices for the commercial and industrial sector must rise,” warned Energy Minister Pierre Fitzgibbon the day after Hydro-Québec’s action plan was presented, but these increases do not apply tomorrow.

“Service costs will inevitably increase. The task of the energy authority is to record these increases and allocate them to the different blocks,” said the Minister of Economy, Innovation and Energy (MEIE) on the sidelines of an announcement on Friday in Montreal.

“We have time to look, because nothing will happen until 2025. The capital expenditure involved will occur between now and 2035, so we have time to consider it,” he continued.

Increases of 1% to 2%?

A few hours earlier, Hydro-Québec CEO Michael Sabia mentioned possible increases in an interview with Paul Arcand at 98.5.

“Is it perhaps 1% or a maximum of 2% more?” he asked himself aloud.

Hydro-Québec does not fail to emphasize in its 2023 action plan that its tariffs are “affordable and competitive” (see table).

Future tariff increases are coming for major industries, says Fitzgibbon

Table provided by Hydro-Québec

According to Hydro-Québec, commercial tariffs in Quebec are three times lower than in Boston, and in large industrial sectors, for example, Quebec tariffs are four times cheaper than in Germany.

More private?

Furthermore, when asked on Friday about the role of the private sector in the construction of high-voltage power lines, Pierre Fitzgibbon reiterated that this decision would be the responsibility of the state-owned company.

“Maybe they have no choice, but the framework must be clearly defined by Hydro-Québec. They are the ones who will be the project managers. People won’t come here to do anything,” he concluded.

Can you share information about this story?

Write to us or call us directly at 1 800-63SCOOP.