Small business electricity bills are set to explode in Hydro-Québec's ten-year plan
Quebec's small and medium-sized enterprises (SMEs) are subsidizing lower electricity rates for other consumers, including large businesses. Currently, SMEs pay 18 to 28% more than the actual cost of electricity, while large businesses pay 0 to 13% more, and residential consumers pay 14% less than the real cost. This disparity will only grow further, with higher rate increases projected for SMEs compared to large businesses in coming years.
Hydro-Québec plans to invest up to $185 billion over the next decade. Due to the unfair cross-subsidization rates between large and small businesses and the capping of residential rates, Quebec SMEs will bear a larger portion of this financial burden. According to our estimates, your electricity bill could increase by almost 2.5 times by 2035—an unprecedented hike!
On June 6th, the government introduced Bill 69. If passed in its current form, it would reduce the projected increase to 1.8 times your current energy cost.
This issue directly impacts the profitability and competitiveness of SMEs. Higher electricity costs reduce profit margins, limit the ability to reinvest in business growth, and make it harder to compete with larger companies that benefit from lower rates. Addressing this unfair rate disparity is crucial for ensuring a fair and sustainable business environment for SMEs in Quebec.
