Hydro Québec Is Raising Rates And Bills Will Be More Expensive Next Month
The rate hike is well below the inflation rate.
Hydro-Quebec provides electricity to the entire province. Most of Quebec's power is hydroelectric power, and it comes from the dams set up across the province. In fact, Hydro-Quebec is one of the largest producers of hydroelectric power in the world.
The company has been in the news a lot recently because of unrefunded overcharges in the past decade. But despite its reputation, Hydro is able to maintain relatively low costs for Quebec residents. According to its website, for example, residential costs in Montreal are among the cheapest on the continent.
Hydro rate increases are nevertheless met with public frustration, if not fury. So customers will likely not be happy to hear that, most recently, it was announced that Hydro-Quebec will be increasing its rates by 0.9% on April 1.
TL;DR Hydro-Quebec is increasing prices by 0.9% starting April 1. This price hike is above the initial rate application for 0.8%, but still below inflation rates.
The 0.9% hike means a monthly increase of, on average :
- $0.32 for a five-and-a-half-room apartment,
- $0.90 for a small house,
- $1.72 for a midsize house and
- $2.56 for a large house.
This means that customers will be paying between $3.84 and $30.72 more per year.
However, this price hike is below the inflation rate, which is calculated to be at 2.2%. Hydro Quebec has committed to not increasing prices by more than the inflation rate.
The prices, according to Newswire, are calculated so that they "generate sufficient revenue to recover the cost of providing electricity service, estimated at $12.3 billion for the year 2019, to some 4.3 million customers throughout Québec."
Last year, Hydro-Quebec made $3.19B in profits.