Montréal, March 7, 2018
Electricity rate increase below inflation: Commitment upheld for third consecutive year
Hydro-Québec has upheld its commitment to keep rate increases no higher than inflation for the third year running. In its decision on the
2018–2019 electricity rates, the Régie de l’énergie authorized a 0.3% increase for all residential customers and most business customers, well below the forecast inflation rate of 1.6%.
In light of this decision, based on a $127-million reduction in required revenue compared to the rate application, Hydro-Québec will have to find ways of limiting costs in order to continue providing high-quality service to its customers.
The impact of the rate adjustment effective April 1, 2018, will amount to about $0.43/month for a small house and $0.90/month for a midsize house. The monthly bill of people living in apartments is expected to decrease, given that the lower-price consumption tier of the residential rate now includes 36 kWh per day instead of 33 kWh.
Electricity rates are established in such a way as to generate sufficient revenue to
recover the cost of providing service to some 4.3 million customers throughout Québec.
Quebecers will continue to benefit from the lowest residential rates in North America. In 2018–2019, people in Toronto will pay twice as much and New Yorkers, four times as much.
It should also be noted that, over the past 20 years, electricity rates have not gone up as much as the price of many consumer products, such as milk, eggs, public transit and home insurance.