Montréal, March 31, 2023
Rate adjustment comes into effect
On April 1, the annual indexation of Hydro-Québec’s electricity rates comes into effect under applicable legislation.
In accordance with the announcement by the Québec government when Bill 2 was adopted in February, the indexation rate for domestic distribution rate prices applicable to residential and farm customers is capped at 3%. This cap aims to limit the effects of inflation on domestic rate increases and corresponds to the upper limit of the Bank of Canada’s inflation-control target, which is currently 3%.
For residential customers, the 3% rate increase starting April 1, 2023, amounts to $2.28 a month for a three-bedroom apartment, $4.27 a month for a small house (111 m2), $5.65 a month for a midsize house (158 m2), and $6.97 a month for a large house (207 m2).
Rates for business customers will increase by 6.5% to reflect the change in the Consumer Price Index (CPI) in Québec between September 30, 2021, and September 30, 2022, excluding alcoholic beverages, tobacco products and recreational cannabis. Over the past 50 years, Hydro-Québec’s electricity rates, which are among the lowest in North America, have trended similarly to the rise in the CPI.
The increase applicable to large-power industrial (Rate L) customers is 4.2%. It was determined by applying the rate of 0.65 (set in a recent decision by the Régie de l’énergie) to the reference indexation factor of 6.5%. This measure strives to ensure Rate L remains competitive, as provided for under existing legislation.
Tools and measures to support customers
Hydro-Québec invites residential customers to consult the energy performance indicator to better understand their electricity use and find out ways to save, as well as to sign up for dynamic pricing and save when they reduce their electricity use during the coldest hours of winter.
Hydro-Québec will maintain the suspension of administrative charges for unpaid bills implemented because of the public health crisis on condition that the customer enters into a payment arrangement. Customers who have trouble paying their electricity bills can sign up for such an arrangement at any time by visiting our website or calling customer services at 1 888 385-7252 during business hours.
For business customers who want to reduce the impact of the increase, Hydro-Québec recommends exploring existing financial assistance programs for the implementation of energy efficiency measures that help businesses reduce their electricity use and save on their bill.