Hydro-Québec reaffirms its commitment: Affordable and competitive rates

Montréal - Hydro-Québec reaffirms its commitment by asking the Régie de l’énergie to approve limited rate increases that are affordable for all Quebecers and that will maintain the competitive advantage of local businesses. The increases will be stable and predictable for the next three years, enabling Hydro-Québec to make the structural investments needed to carry out the Action Plan 2035, in particular to improve service quality and reduce the number of power outages by 35%.

The annual rate increases submitted by Hydro-Québec to the Régie de l’énergie for 2026, 2027 and 2028 are as follows:

• Residential rates: 3%
• Commercial rates: 4.8%
• Industrial rates: 4.8%

The average increase for residential customers amounts to approximately $2.40 per month for an apartment and $6.70 per month for a midsize home. With Hydro-Québec’s $0 smart thermostat program, households will be able to save approximately $150 a year for a midsize home, considerably reducing the impact of the rate increase or even offsetting its effect completely for a year.

Québec continues to stand out with electricity rates among the lowest in North America, giving it a competitive advantage. In fact, rate increases have been significant in neighbouring power systems on account of the investments they required. Local businesses will therefore benefit from electricity from renewable sources as well as rates that are well below those in comparable regions, enhancing Québec’s competitive position. Customized energy efficiency measures will also enable businesses to save up to 20% on their electricity bills. 

The rate adjustments are needed due to inflation and investments stemming from the Action Plan 2035, which focus on:

• Improving service quality
• Increasing electricity generation capacity to support economic growth and decarbonation
• Implementing energy efficiency initiatives

Significant efficiency efforts in the amount of $450 million have enabled Hydro-Québec to reduce costs, thereby alleviating the increases by 0.7% for each of the next three years. For example, the company has improved its productivity by using drones for inspections and artificial intelligence for more efficient work scheduling.

Support to lower electricity bills

“We’re going to invest a record amount of $2.5 billion in energy efficiency over the next three years. Our $0 smart thermostat program will enable residential customers to significantly lower the impact of the rate increase or even offset its effect completely for a year. We’re also going to work closely with our commercial and industrial customers to support them, taking into account their varying realities in the current economic climate,” said Dave Rhéaume, Executive Vice President – Commercial Activities and Chief Customer Officer.

Over the coming years, the following measures will be implemented:

• $0 smart thermostat program for residential customers, offered to both homeowners and tenants.
• Investments in the amount of $75 million to support homeowners and tenants in challenging energy situations.
• In collaboration with the government of Québec and the government of Canada, a new energy- efficient renovation program will be deployed to help lower energy costs for households in challenging energy situations, make homes more energy efficient and reduce greenhouse gas emissions.
• Tailored measures to enable businesses to save up to 20% on their electricity bills, including:
  • For small and medium businesses, innovative solutions that use artificial intelligence to provide energy analyses that can enable them to optimize their consumption
  • For industrial customers, a financial and technical support service that will boost their productivity
• Bill relief measures for certain sectors of activity made vulnerable under the current economic climate.
• Beginning in 2026, new financial assistance for the purchase of solar panels, more specifically, $1,000 for each installed kW, up to a maximum of 40% of the total installation costs.
  • For a midsize home, this could represent $5,000 in assistance.
  • For a commercial building, this could represent $40,500 in assistance. 

Presentation of the tariff issue (in french)