Wednesday, March 01, 2006

Hydro-Quebec Will Increase its Electricity Rates by 5.3%

Hydro-Quebec said yesterday it will increase its electricity rates by 5.3 per cent - nearly double the national inflation rate of 2.8 per cent - effective April 1.

src: The Montreal Gazette

The reason for the increase is given on the Quebec Energy Agency website:

For 2006, the Distributor’s revenue requirement is $10,051 million, necessitating additional revenues of $463 million and therefore an average rate increase of 5.3% for the 2006-2007 rate year.
The increase is to cover its capital and operating costs that have reached 11 cents/kWh because electricity demand has soared in Quebec.