Meter-Reading Charge and New Meters Hydro-Québec customers not being overcharged

On the contrary, the new meters have meant savings of about $26 million in the 2015–2016 electricity rates

Hydro-Québec categorically refutes the recent allegations in some media that its customers have been overbilled or double-billed for meter reading since the introduction of next-generation meters.

Substantial savings for customers
The unfounded allegations are based on a document from 2008 (before the massive rollout of the new meters) illustrating a theoretical breakdown of the fixed daily charge, which was used at a working meeting with the Régie de l’énergie [Québec energy board]. They don’t take into account all the factors on which the electricity rates are based or the efficiency gained through adoption of the new technology.

On the contrary, in 2015–2016, Hydro-Québec customers will in fact benefit from savings of $26 million stemming directly from the use of the new meters, which are pushing electricity rates down. By 2018, there will be $81 million in recurrent savings each year, which will lower the company’s costs and thus benefit everyone in Québec.

Customers who have opted out of a next-generation meter and therefore have non-communicating meters that must be read manually do not pay double, either. They are billed a $5 monthly meter-reading charge, in line with the Régie de l’énergie ruling recognizing the user-pay principle. The meter-reading charge billed is based on the actual cost of continuing to read meters manually.

Furthermore, it should be pointed out that, even with the next-generation meters, some metering costs (data transmission, transfer for billing purposes, etc.) still apply to all customers.

Understanding the residential rate structure
The daily fixed charge paid by each customer is the fixed component of the residential rate that covers part (not all) of the cost of electricity service, which includes customer service and metering. The fixed charge of 40.64¢ a day has been frozen for 10 years, thanks to efficiency gains realized. The rest of that cost, along with Hydro-Québec Distribution’s other costs (distribution and transmission, etc.), must be recovered through other components of the residential rate, chief among them the electricity consumption charge. In short, one thing should be kept in mind: the rates paid by customers reflect all the company’s real costs of providing electricity service to Quebecers.

Source :
Patrice Lavoie
Hydro-Québec
514 289-2097