Price of electricity

Rate increases

Hydro‑Québec adjusts its rates for several reasons:

• Inflation adjustment: When the economy is experiencing rising prices, Hydro‑Québec adjusts its rates to cover its operating costs.
• Actual increase in the cost per kilowatthour: Investments in infrastructure, grid upgrades and the energy transition result in additional costs that are reflected in electricity rates.

To lessen the impact on customers, Hydro‑Québec implements measures such as:

• Demand response offerings and dynamic pricing
• Energy efficiency programs to reduce energy consumption and lower a customer’s electricity bill

Comparison of electricity prices

Every year, Hydro‑Québec compares the monthly electricity bills of its residential, commercial, institutional and industrial customers with those of customers of the various utilities serving 21 major North American cities.

The same conclusion is reached year after year: Hydro‑Québec’s rates are affordable for Québec households and competitive on a global scale for businesses.

Understanding your electricity rate

Hydro‑Québec’s rates are generally based on three main factors:

• System access charge: A set amount that you pay for electricity service.
• Energy: The amount of energy you consume, expressed in kilowatthours (kWh). Energy is billed for all service contracts, without exception.
• Power demand: Power demand (the intensity at which electricity is used), expressed in kilowatts (kW), varies constantly. It is only charged to customers that use a large amount of electricity.

These components reflect the costs incurred by Hydro‑Québec to provide electricity service.

Three‑year process with the Régie de l’énergie

Every three years, Hydro‑Québec submits a detailed rate application outlining the budgets required to provide electricity service for the following years to the Régie de l’énergie. If the electricity rates in effect do not allow the company to recover the cost of providing service, a rate adjustment may be made.

The Régie de l’énergie is the body mandated by law to set electricity rates in Québec. In addition to setting rates, the Régie approves the terms and conditions related to electricity distribution, authorizes commercial programs and investments, and reviews customer complaints.

The regulatory process follows four main steps.

• July or August: Hydro‑Québec files its rate application with the Régie de l’énergie.
  • The Régie issues a notice to announce a public hearing.
  • Interest groups that wish to participate must be recognized as participants.
  • Participants submit information requests to Hydro‑Québec to better understand the issues and draft their briefs.
• September to February: At the public hearing, representatives of all parties analyze and discuss the application. The Régie conducts a detailed review of Hydro‑Québec’s rationale and forecasts, as well as the perspectives presented by the participants.
• March: The Régie releases a preliminary decision early in the month and renders its final decision a few days later.
• April 1: The new rates come into effect.