Environmental organizations challenge the agreement between Hydro-Québec and Énergir

The Association of Environmental Energy Organizations (ROEE) filed a request for review on Monday, The Canadian Press learned. Other requests for review led by other organizations were also to be filed, it was possible to learn.

The agreement between the Crown corporation and the main natural gas supplier aims to convert gas heating systems to dual energy, but Hydro-Québec will have to compensate Énergir for its lost revenue and pass the bill on to its customers. The agreement reduces demand for electricity during peak periods.

But environmental organizations say the deal is unacceptable. According to them, it slows down the energy transition and prolongs the use of polluting fossil fuels from the oil sands.

What’s more, the agreement will lead to staggering costs of several billions for Hydro-Québec subscribers, in compensation paid to Énergir for the loss of income, argue the organizations.

Admissible or not

The Régie will first have to decide in the coming weeks or months whether the request for review is admissible. If so, she will then hear the case.

To justify his appeal, the ROEE relies in particular on the dissidence of one of the commissioners in the decision approving the agreement — dissidence is rather rare in the history of the Régie, notes an analyst who works for the ROEEJean-Pierre Finet.

Breaches of the Régie

In his request, the ROEE argues that the majority [des régisseurs] has exceeded or failed to properly exercise the jurisdiction of the Régie and has committed serious and fundamental errors in respecting and applying the Act respecting the Régie de l’énergiecan we read.

It is said that the Régie exceeded its rights, the rights of its constituting act, commented Mr. Finet, in an interview with The Canadian Press. In other words, the Régie went too far in stating general principles.

” A serious substantive defect is alleged “

For example, deciding to go to dinner with the family is a general principle, but deciding that it will be in a specific restaurant, that one will eat chicken and another will eat ribs, is no longer a general principle. In our case, it is a pricing decision that binds the next training courses for managers who will be placed in front of accomplished factshe gives as an example.

It makes no sense, it’s like compensating the oil companies every time we recharge an electric vehicle, it doesn’t make more sensesays Mr. Finet.

An invoice passed on to customers

Hydro-Québec already estimates that the agreement will lead to a 1.4% increase in its rates in 2030.

The state-owned company estimates its shortfall at $4.8 billion, coming both from the agreement with Énergir, but also from an increase in electrification in general.

This cost will exist, whether there is an agreement with Énergir or not, we will electrify the heating of buildingsexplained a spokesperson for Hydro-Qyébec.

By electrifying buildings that currently use 100% gas as part of the agreement with Énergir—which aims to relieve pressure on the peak network—the impact on new electricity supplies is on the order of $4.8 billionexplained the spokesperson.

Complete electrification, therefore without going through the dual energy on which the agreement is betting, would take longer and cost more, i.e. $9.6 billion in the long term, exorbitant costs for societysupports Hydro-Quebec.

For its part, the Legault government has constantly repeated that this agreement was advantageous, since it would make it possible to reduce Quebec’s emissions by 540,000 tonnes of greenhouse gases by 2030, according to the figures he advances.