Groups call for freeze on Hydro-Qubec rates

A coalition of business and consumer groups is asking for afreeze on Hydro-Qubec electricity rates,after the state-owned company announced it plans to raise rates this year and next in line with inflation.

The Quebec wing of the Canadian Federation of Independent Business (CFIB), Option consommateurs and the Association qubcoise des consommateurs industriels d'lectricit (AQCIE) also want the Quebec government makethe province's energy regulator, the Rgie de l'nergie, bring Hydro to heel to protect consumers.

In January 2022, inflation in Canada exceeded fiveper cent for the first time since September 1991, according to Statistics Canada. By comparison, the overall Consumer Price Index (CPI) increased by oneper cent in January 2021.

The three organizations sayHydro-Qubec, a monopoly,made a profitof $3.5 billion in 2021. According to their calculations, by 2023the Crown corporation will have madean extra$600 million with its proposed rate hikes.

Christian Corbeil, director of Option consommateurs, says that by removing the Rgie de l'nergie's power to set Hydro-Qubec's rates annually, the government hasexposedconsumers to rate-shocks and allowedthe Crown corporation to make unreasonable profits.

Franois Vincent, vice-president of CFIB Quebec, says that just as small- and medium-sized businesses are trying tobounce back from the pandemic, they are being battered by inflation.

"Right now, it is the worst time that Hydro-Qubec can impose a rateincrease," he said. "The majority of small businesses did not recover their normal revenues."

In a news release, Vincent said the minister of energy and natural resources must understand that stifling small businesses won't help the economy in the short, mediumorlong term.

The CFIB calculated that the average rate increase for a small local businesswould be around $200 a year and the average increase for all commercial clients would be $518 more annually.

On Sunday, Liberal Opposition Leader Dominique Angladeproposed a rate freeze and thetemporary lifting ofthe provincial sales tax onelectricity bills (upto $4,000).