Hydro-Québec is proposing a new residential rate for high-consumption customers

Montréal – Hydro-Québec is proposing a new rate for the large residential electricity consumers, whose higher electricity use is often due to heated pools, hot tubs and heated driveways or because of very large living spaces.

Residential electricity demand is expected to increase significantly in the coming years, and supplying enough electricity to meet this higher demand will put upward pressure on rates for all customers, including those who consume the least.

This rate would apply to only 5% of customers, about 200,000 households whose annual consumption exceeds 35,000 kWh, excluding farms, modest-income households and multi‑unit dwellings with a single meter. This level of consumption is twice the Québec average for a home heated with electricity, which is 17,000 kWh.

This new price signal is intended to encourage more efficient residential use of electricity. It will also help prevent all customers, including modest-income households, from bearing costs generated by a minority of customers who consume more than others.

The proposed rate structure maintains the first two tiers of the residential base rate (Rate D) and introduces a third tier for high‑consumption customers. It is structured as follows:

• a first tier, at 7¢/kWh, for basic consumption (space and water heating, lighting, appliances)
• a second tier, at 12¢/kWh, for consumption beyond 15,000 kWh/year
• a third tier, at 13¢/kWh, for consumption beyond 35,000 kWh/year, targeting households with very high consumption

The first two tiers largely cover the essential needs of the average Québec household.

Hydro‑Québec will support customers affected through rate offerings and grants to help them avoid paying the new rate.

Hydro‑Québec believes that this proposal will lead to behavioural changes that could reduce consumption by 400 GWh, equivalent to the electricity use of approximately 25,000 homes.

This initiative follows a previous proposal that Hydro‑Québec submitted to the Régie de l’énergie in 2024 that was not approved. The new proposal incorporates feedback from the Régie de l’énergie as well as comments from various stakeholders in the energy sector consulted during its development.