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Hydro-Québec rate increase request includes overconsumption charge

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Hydro-Québec rate increase request includes overconsumption charge
(photo courtesy Hydro-Quebec)

Crown provincial utility Hydro-Québec is submitting its rate application to the Régie de l’énergie for increases applicable as of April 1, 2025, and this proposal includes an overconsumption charge for households.

Rate increases proposed are 3% for residential customers, 3.9% for commercial customers and 3.3% for large industrial customers. These increases are the result of inflationary pressure in recent years and are the same as those of 2024 for residential customers and large industrial customers, the utility said. The increase for commercial customers is lower than the increase of 2024, which was 5.1%.

Hydro-Québec has adopted a comprehensive strategy in which energy efficiency will play a key role as a driver of the energy transition, according to a release. So, as part of the proposal, the utility presented “enhanced rate options” it said will allow customers to reduce their bills despite the rate increase, thanks to numerous incentives to reduce electricity consumption. These options take into account the fact that electricity is a valuable asset and that we need to change the way we use it, Hydro-Québec said.

Hydro-Québec said it will analyze the impacts of the measures announced and propose additional measures over the coming years to further encourage its customers to consume less and at the right time.

The utility will triple its energy efficiency budget, from $150 million in 2022 to $500 million in 2025, to encourage in particular the installation of efficient heat pumps. It will also launch a voluntary incentive tariff allowing savings of up to $350 per year for customers who shift their consumption, for example by recharging electric vehicles at night. Self-production, including with solar panels, will be made easier for all customers because the maximum self-production capacity will increase from 50 kW to 1,000 kW. In addition, starting in 2026, Hydro-Québec intends to offer a subsidy for the acquisition of solar panels.

Some households consume much more electricity than the average, which is why Hydro-Québec is proposing to regulate overconsumption. Households that consume more than 50,000 kWh per year, or about 1% of residential customers, will pay a higher rate to encourage them to consume better. This measure would apply starting in 2027, which would give them a few years to implement energy efficiency measures and reduce their consumption below that level. 

Also, large industrial customers will have to equip themselves with systems allowing them to monitor their consumption continuously.

Hydro-Québec generates, transmits and distributes electricity. It is Canada’s largest electricity producer and one of the largest hydroelectric producers in the world, sourcing most of its electricity supply from hydroelectric generating stations. Its sole shareholder is the Quebec government.