For the fourth year in a row Hydro Quebec has asked for a rate increase below the rate of inflation.
The utility has asked the Energy Board for permission to hike its rates by 0.8 per cent.
The price jump is will pay for higher electricity purchase costs and the expansion and maintenance of the high voltage transmission system, which will help provide stable service.
Éric Filion is President of Hydro Quebec distribution. He says despite the increase, Quebec still offers the cheapest power in North America.
“The cost is half what it is in Toronto,” he said. “If you compare to Boston or New York, it’s about 25 per cent.”
The 0.8 per cent hike is the lowest ask in four years, but if approved by the Energy Board, it will still mean an increase on your bill.
In order to counter that, and to help take some pressure of the grid, Hydro Quebec also announced two new pricings systems that will be available on a voluntary basis, next winter.
The first option allows customers to keep their regular rate, but for the 100 coldest hours of the winter, when demand on the grid is at its highest, they will be offered an incentive credit of $0.50 per kWh curtailed.
The second option takes a more punitive approach. Customers will be offered the much lower rate of $0.03 per kWh for 97 per cent of the time, but during critical hours, when the system is overloaded, these customers will be charged $0.50 per kWh.
Both options are meant to save clients’ money, while taking pressure off the grid.