Hydro-Québec: the tariff increase will be of 0.9%

Hydro-Québec: l’augmentation des tarifs sera de 0,9%

Photo: Catherine Legault Duty
According to his calculations, for a residential customer whose annual average consumption is 18 261 kilowatt hours (kWh), this results in a monthly increase of approximately 1,11$, or$ 13 per year.

The Régie de l’énergie ruling. The average increase in Hydro-Québec’s rates will be 0.9 % this year. This decision takes into account the application, for the first time, the mechanism of redistribution of surpluses.

Hydro-Québec wanted an increase of 1.2 %. This will be an average pricing increase of 0.9 % for all customers effective April, from 0.3 % for the large industrial customers at the rate L. “The Governance reduced to 27 million in revenues requested by Hydro-Quebec,” she says. Last year, the increase granted was 0.3 %.

According to his calculations, for a residential customer whose annual average consumption is 18 261 kilowatt hours (kWh), this results in a monthly increase of approximately 1,11 $, or $ 13 per year. “The amounts that Hydro-Québec will collect from its customers will enable it to cover its expenses, estimated at approximately $ 12.3 billion for the year 2019 “, one can read in the decision of the Régie.

In the same breath, the authority recognises in its calculation the mechanism of processing of deviations, which is activated beyond a permitted return of 8.2 %. It had been adopted in 2014, but suspended by the minister of Finance Carlos Leitão, in support of the fiscal year to return the budget to balance. This rebalancing of the public finances, having been reached, the redistribution of the surplus has been applied to the financial results of 2017. Thus, under this mechanism, ” Hydro-Québec shall provide to the customer 50 % of the excess returns for the year 2017, the estimated 43.4 million, including interest. This amount is delivered to the customer as a reduction of the rates for the year 2019, ” says the regulator.

The new overpayment, 182 million, accounted for by Hydro-Québec for the year 2018, will be part of the calculation of the pricing permitted applicable by April 2020.

Dynamic pricing

Hydro-Québec may also introduce, for the winter of 2019-2020, the options of dynamic pricing on a voluntary basis for residential customers and small power. The Crown corporation then propose two new offerings : the basic rate with credit and in winter, the Flex ticket. Customers who are not interested will keep their base rate. “These offerings will be deployed in a gradual manner. The first year, and 20,000 customers selected at random will be invited to participate “, says the Crown corporation. They will allow registered customers to make savings in the winter period, i.e. between 1 December and 31 march, ” if they change their consumption of electricity at the request of Hydro during the events of edge critical, between 6 a.m. and 9 a.m. and between 16 h and 20 h, to a maximum of 100 hours per winter “.

Finally, the board retains the proposal to Hydro to raise the threshold of the first tranche of energy to the domestic rates of 36 kWh/day to 40 kWh/day. “This higher consumption at a price lower than that of the second tranche will contribute to the relief of the invoice of the “small” consumers who use electricity for heating their residence, including the low-income households. “

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