Régie de l’énergie is giving the green light to the partnership between Hydro-Québec and natural gas distributor Énergir, an agreement criticized by consumer and environmentalist groups.
The agreement, announced last July, aims to reduce greenhouse gas (GHG) emissions by converting gas heating systems to dual energy. To do this, Hydro-Québec must first pay and reimburse Énergir $ 400 million for its lost revenue.
In the public interest
Régie agreed with Hydro-Québec’s arguments that this would be clear more expensive to fully electrify target markets than to adopt dual energy, in a decision it made on Thursday. It also considers that the agreement is in the public interest.
Hydro-Québec estimates, in part, that dual energy will allow $ 1.7 billion in savings by 2030 compared to a scenario where target markets currently powered by natural gas are electrified.
The price effect
The tariff impact of the agreement on Hydro-Québec customers will be approximately 1.43% by 2030, according to Régie. An estimate similar to that provided by the Crown corporation. Thus, the residential customer with 5 1/2 residences will have a rate impact on his or her annual electricity bill of approximately $ 2.84, beginning in 2025, as an example is given in the judgment. This amount is estimated at $ 12.71 per year in 2030.
Régie’s decision was the final regulatory step before allowing the state-owned company and Énergir to enforce their agreement.
Source: Radio-Canada
