A decision by the Régie de l’énergie that compromises the implementation of Hydro Québec’s Action Plan 2035

Montréal - The decision issued today by Québec’s Régie de l’énergie regarding Hydro‑Québec’s rate application for the years 2026, 2027 and 2028 will have significant impacts on the implementation of the Action Plan 2035. The imposed adjustments send a troubling signal and will have concrete consequences for customers, particularly with respect to grid reliability and energy efficiency.

Less money to improve service quality

The decision confirms the Régie de l’énergie’s refusal to recognize the funds needed to improve service quality, even though this is Priority 1 of Hydro‑Québec’s Action Plan 2035. The amounts at stake total $450 million. At a time when the grid must be reinforced and upgraded to cope with growing demand and climate variations, this situation will limit Hydro‑Québec’s ability to deploy all necessary measures to improve service reliability and reduce the frequency and duration of outages.

Hydro‑Québec notes that maintaining and improving service quality depends on sustained investments in the distribution system, particularly for the replacement of aging equipment and vegetation control. Recent climate events underscore the importance of investing in the reliability of our service.

Energy efficiency programs cut, despite their central role

The Régie de l’énergie has decided to reduce the budgets requested by Hydro‑Québec for energy efficiency and demand response programs by 13%. This reduction is equivalent to the amount paid out in grants last year for the purchase of heat pumps. Yet the decision itself acknowledges that these programs are an essential tool for limiting growth in demand, reducing pressure on the grid and avoiding more costly additional power supplies. Budget cuts will limit the scope and pace of deployment of several initiatives, for both residential and business customers, including modest ‑income households.

In addition, the Régie rejected the first version of the overconsumption rate proposed by Hydro‑Québec for high‑consumption residential customers and has requested that a new proposal be filed in the fall of 2026. This delays the implementation of a tool designed to promote more responsible electricity use and reduce waste.

Hydro‑Québec will analyze the decision in detail over the coming days in order to confirm the applicable rates based on today’s ruling. At the same time, it will assess the options available and determine the next steps.