Rate increase of 2.6% comes into effect

MONTRÉAL, April 1, 2022 /CNW Telbec/ - The annual indexation of Hydro-Québec's electricity rates under An Act to simplify the process for establishing electricity distribution rates comes into effect today.

Impact on residential customers who heat their homes with electricity (CNW Group/Hydro-Québec)

Annual indexation of electricity rates (CNW Group/Hydro-Québec)

As was announced last October, rates for residential and business customers will increase by 2.6% on April 1, 2022, to reflect the change in the Consumer Price Index (CPI) in Québec between September 30, 2020, and September 30, 2021, 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.

For residential customers, the monthly impact of the 2.6% increase as of April 1, 2022, amounts to $1.92 a month for a three-bedroom apartment, $3.60 a month for a small house (111 m²), $4.77 a month for a midsize house (158 m²) and $5.88 a month for a large house (207 m²).

The increase applicable to large-power industrial (Rate L) customers is 1.7%. The indexation was calculated by multiplying the general indexation rate of 2.6% by the factor of 0.65 approved in a recent decision by the Régie de l'énergie in order to ensure Rate L remains competitive.

Annual indexation of electricity rates

Passed by the National Assembly in December 2019, An Act to simplify the process for establishing electricity distribution rates provided for a rate freeze in 2020 and rate increases pegged to inflation during the years between the times the Régie establishes new rates based on cost of service, which will occur in 2025 and every five years thereafter. For the years when the Régie will not be involved in the rate-setting process, the Québec government recently announced its intent to limit adjustments in order to avoid rate shocks for consumers.

Measures to help customers

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 on our website or by calling customer services at 1 888 385-7252 during business hours.

SOURCE Hydro-Québec

Hydro-Québec, Media Relations, Tel.: [phone]