2023-07-31 23:48:45
Quebec would be more likely to improve its energy efficiency by increasing electricity rates than by keeping its current programs, argues the Montreal Economic Institute (IEDM).
This proposal is one of the recommendations made by the think tank associated with the economic right as part of the consultations conducted by the Ministry of Energy on the supervision and development of clean energies.
Due to rates below the North American average, Quebecers are relatively power-hungry, we note. A rate hike would help curb this appetite by sending “a price signal,” explained MEI public policy analyst Gabriel Giguère in an interview. “We see the Hydro-Québec account and we say to ourselves “if I adjust my behavior, it costs less”, and I think that the economic logic behind that is quite clear. »
The MEI’s proposal could, however, represent a significant increase for households. In 2022, Quebecers paid an average of 7.59 cents per kilowatt hour (kWh). In comparison, in cities in Eastern Canada, this rate is 14.93 cents on average, or about double. The think tank proposes to spread the increase over “ten years”.
Without targeted mitigation measures, such an increase would harm the less fortunate, concedes Mr. Giguère. “We must ensure that the government puts in place a targeted financial assistance program so that the less well-off can absorb this increase in rates,” he specifies.
The analyst also points out that the wealthy benefit from low electricity prices. “If you have a big house, you’re going to use a lot more electricity than someone, say, who lives in a three or four and a half. »
However, the MEI’s proposal risks being unpopular. The Legault government, which had decided to link the evolution of prices to the consumer price index, had to decline in 2022 and cap the increase due to the exceptional surge in inflation and the discontent that would have resulted in a 5% price increase.
Higher rates that would encourage households and businesses to be more energy efficient would however be necessary, at a time when Hydro-Québec is considering the end of surpluses, and since the cost of new supplies will be higher than that of the heritage block, maintains Mr. Giguere.
More private and gas?
In its brief, the MEI also reiterates its recommendation that the market be opened up more to private producers, formulated earlier in July in a report.
The organization is also renewing its position in favor of natural gas, because replacing this source of energy would put greater pressure on the Hydro-Québec network. “We have to make sure that we don’t turn away from natural gas too quickly,” says the analyst.
The MEI also pleads for the lifting of the ban on hydrocarbon production in Quebec, a proposal criticized by environmentalist groups, who believe that such a decision would delay the necessary energy transition.
Mr. Giguère, for his part, points out that Québec could contribute to reducing the dependence of European countries on Russia. “Exporting to China, which is still opening a lot of coal factories, would help it make this transition from coal to natural gas, which reduces greenhouse gas emissions by 50%. »
“We consume natural gas in Quebec,” he continues. It is imported from Western Canada and the United States. It’s not a bad thing, but if we consume it, why don’t we allow exploitation? »
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