(Quebec) Creation of a residential customer assistance fund, opening up to the modulation of electricity rates based on the time of consumption from 2026 and authorization for Hydro-Québec to proceed without a call for tenders to find new energy sources, Minister Pierre Fitzgibbon has finally tabled his energy bill, which casts a wide net.
The Legault government is asking the Energy Authority to set prices from 2026 to “promote the reduction of electricity consumption during peak periods”, and based on “energy intensity”. Minister Fitzgibbon wants a debate on the issue of tiered fares. Do we have to pay more for our electricity when we heat our swimming pool, or when we run our dishwasher during peak consumption, for example? “Modulation is logic itself, we see it all over the world. » This modulation will however be optional, argued the minister in an interview with our columnist Francis Vailles, after asserting at a press conference that the authority “could” impose it with its law.
Pierre Fitzgibbon wants to go quickly. To decarbonize Quebec in 2050, “we must practically double our current electricity production and we have 25 years to do it.” “It’s very short,” he said. The solution: allow Hydro-Québec to develop energy projects “without calls for tender”. He affirms that the Régie de l’énergie will be able to “control” the cost of projects. “No more are the numerous stages of government decrees which precede grids of criteria, which go to the Régie, which lead to a call for tenders, which qualify suppliers. All this was far too long,” the minister said.
With his bill, Pierre Fitzgibbon wants to launch a major debate: who should pay for the energy transition and achieving carbon neutrality in 2050 to contribute to the fight against climate change. “It’s a huge social project. Our hope is that everyone gets on board,” he said. To achieve this, between 150 and 200 TWh must be produced to replace “dirty energy” from hydrocarbons. Its vision must be found in an integrated energy resources management plan unveiled in 2026. “Who will pay for this? Are you the companies? Are you the businesses? Are you residential? Are you the government? Are you Hydro-Québec? This is a debate we need to have. »
“There will be no rate shock in the short term. I can reassure the public and businesses that it won’t happen,” said Fitzgibbon. Quebec is maintaining its promise to limit residential rate increases to a maximum of 3%, but only until 2026. To achieve this, it will use its own funds. The potential cost: between $100 million and $300 million per year according to modelling. But after 2026, things could get tougher. “The increases that will occur with new marginal-cost production, different from the heritage block, will occur in 2028, 2029, 2030, 2032, and up to 2035,” said the minister.
“There is no question of privatizing or denationalizing anything,” said Pierre Fitzgibbon. However, it will allow a company like TES Canada in Mauricie to sell wind energy to its neighbours “as long as these installations are located on an adjacent site.” The exception already existed, but for electricity produced by forest biomass. “We want to allow renewable energy producers to sell part of their production to a consumer located on adjacent land, but not on the Hydro-Québec transmission network. When we talk about energy transition, we must add forces and not divide them,” said Mr. Fitzgibbon.
Hydro-Québec must significantly increase its energy production by 2050. It “will want to focus on large projects,” summarized Minister Pierre Fitzgibbon. This bill allows it to sell its small power plants of 100 MW and less to municipalities and indigenous communities. The state-owned company owns 16 hydroelectric power stations of less than 100 MW, located notably on the Saint-Maurice, Sainte-Anne, Outaouais and Saint-Laurent rivers, for example.