Hydro-Qubec hikes home electricity rates by 2.9%

Quebecers will soon be shelling out more for electricity, as Hydro-Qubec rates are set to increase 2.9 per centon April 1.

The increase, approved by Quebec's Energy Board, is less than the 3.9 per centhike that Hydro-Qubec had requested.

The rate increase comes on the heels of Hydro-Qubec'srecord-breaking profits posted in 2014.

• Hydro-Qubecprofits surge to $3. billion due to cold weather

Quebec's Energy Board estimates the 2015hike will cost the average household an additional $44 a year.Quebec households already faced a4.3 per centhikein 2014, while Hydro-Qubec had requested a 5.8 per centincrease.

Olivier Bourgeois, energy analyst for theconsumer group Option Consommateurs, calls the latest hike "small" but saidthe rate increases year after year have a cumulative effect.

"When you add up all the increases, the figures become astronomical," saidBourgeois, who points outelectricity rates have increased 28.9 per centsince 2004.

"It's not like you're going to pay $44...this year and then it's going to end. You're going to pay $44 more this year, and the year after and the year after and forever."

According to Bourgeois,Hydro-Qubec had to cut off electricity to 77,000 households last year because they couldn't pay. He saidthat's up from 34, 000 households the previous year.

"One of the reasons are that people are unable to pay those rate increases year after year," saidBourgeois.

Wind energy blamed

Quebec's Energy board says the rate increase was prompted mostly byHydro-Qubec'sincreased costs in purchasing electricity produced by wind energy, which is more expensive than electricity produced by hydro-electric dams.

Those costs account for 2.1 per centof the 2.9 per centincrease, according to the board.Hydro-Qubecis also anticipating a decrease in revenues, due to a slowdown in activity in the pulp and paper sector.

Bourgeois believes consumers are paying out of pocket to support the wind energy industry, and the government's plans for regional economic development.

"It's mainly for energy that we don't need and for energy that we won't even use," saidBourgeois. "So why dothe consumers need to pay for energy they don't use?"

When Hydro-Qubec requested its latest rate increase back in August, wind energy advocates said wind power should not be used as a scape goat for rate hikes.

The Canadian Wind Energy Association said increased costs are inevitable, whenever a new kind of energy is added to the grid.

The Quebec governmentsays it is taking citizens' concerns seriously.

A spokeswoman for Pierre Arcand, the ministerof Energy and Natural Resources, told CBC via email that "the minister hears the concerns regarding wind energy" and has not launched any new bid for contracts for any wind power projects.

"As Mr. Arcandhas already said, thethe wind energy sector should look to export in order to no longer be dependent on Hydro-Qubec," the email said.

Hydro-Qubec would not comment on the increase.