More Hydro Hikes Making Quebec’s Energy Market Less Competitive

More Hydro Hikes Making Quebec’s Energy Market Less Competitive

Despite unprecedented surpluses, Hydro – Quebec is no longer able to offer the best rates on electricity to large companies in North America. This is what the Marois government has implicitly recognized last Monday by offering discounts to huge amounts of electricity to attract new businesses in Quebec.

For 20 years, from 2007 to 2027, the gas plant in Bécancour , in the Centre -du -Québec, will only produce 13 % of electricity Hydro -Québec has agreed to purchase.

The four million Quebec consumers will therefore have to pay $ 1.8 billion in penalties to the company TransCanada.  For reference, this amount is equivalent to the cost of construction of the CHUM in Montreal.

With wind farms imposed by Quebec to the customers the state corporation, the bill may be even higher.

“The consumer will spend about $ 830 million more per year, which represents approximately 8% on their bill ,” said the CEO of the Quebec Association of industrial electricity consumers, Luc Boulanger .

With these additional costs , the price of 4.7 cents per kilowatt-hour available to businesses is simply not competitive in North America.

“In Quebec, we do not have the lowest rates for industrial electricity, far from several U.S. jurisdictions that offer more favorable than those currently offered rates in Quebec,” said Mr. Boulanger.

The association provides an example of Quebec industry succeeding in finding better electricity rates in the state of New York, Louisiana, and the Gulf of Mexico.

……………………………………………………………….. Staff Writer

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