Hydro-Québec’s freezing rates are “not a good idea”, according to its CEO

It’s about the worst thing we can do to increase the wealth gap with our customers.he argued with Patrice Roy on Tuesday in an interview broadcast on ICI RDI and on Telejournal 18 h. Because of doing so you freeze [aussi] the rates of someone who has all the money to pay them.

Made by Ms. Brochu found himself on the sidelines of unveiling his hurricane assessment on May 21, which cost Hydro-Québec $ 70 million, more than twice the amount he initially estimated.

The bill for this natural disaster will not be passed on to public corporation customers, Ms. reminded. Brochu; instead, these costs will be deducted from the profit that Hydro-Québec pays to the government each year.

This way of doing things comes from “Law 34”, which was enacted under the gag order in 2019, which provides that hydroelectricity rates must be subject to inflation.

The Liberals, on the other hand, want to go back and restore full power to the Régie de l’énergie, which has previously heard representatives of Hydro-Québec on an annual basis to set hydroelectricity rates for the coming year.

The proposal can also be found on the electoral platform of QLPannounced urgently over the weekend.

We will suspend electricity bills until we bring back an independent rate -setting mechanism, instead of tying them to inflation as the current government has done.can we read

Liberals also suggest [cesser] the reduction of sales tax (QST) from the electricity bill, until the new mechanism for determining the charges is put in place.

A situation very different in the United States

Called to comment on the Liberal proposal to temporarily freeze hydroelectricity rates, Sophie Brochu notably recalled on Tuesday that electricity rates in Quebec are [déjà] weakest in americawhile they were in the United States soar Because they are anchored in the price of natural gas.

Yes, the Crown corporation currently does lots of money to exportbecause the price of electricity is fixed to the price of fossil energyadmitted its CEO, who is well versed in the gas industry, he led Énergir from 2007 to 2019. But Hydro-Québec is suffering at the same time from inflation that is causing its costs to explode, he added, for example the gray transformers at the top of the polesits price has risen by 75% sa about 18 months.

These costs, at some point, we will have to recoup themplease Ms. Brochu.

In this context, tariffs will be frozen mistake? Yes, answers the CEO of Hydro-Quebec. And I’m not saying that from a political standpoint. There, I answer you like an energy economist managing public service.

Under the rules established by Bill 34, hydroelectricity rates increased by 1.3% on April 1, 2021 and by 2.6% on April 1.

However, the latest figures from Statistics Canada on inflation suggest that these rates could rise by 6% or 7% next year if nothing is done.

Concerned, the Legault government first indicated that it would intervene to limit the increase in hydroelectricity rates before filing a bill in proper and appropriate form that would have the effect of limiting them to 3%.

Presented 48 hours from the end of the parliamentary session by Minister Jonatan Julien, the legislative part however died in the order paper.