Quebec businesses say electricity rate hikes will have ‘devastating’ effects

Industrial consumers are hoping the Legault government will revise its plans for early increases in electricity rates for businesses.

An association representing a number of industrial consumers is back with a vengeance in the hope that the Legault government will revise its plans for early increases in electricity rates for businesses.

These increases would harm Quebec’s competitiveness at a time when the Trump administration is threatening to slap tariffs on Canada, the Alliance pour la compétitivité énergétique du Québec (ACEQ) argued at a press conference in Montreal on Monday.

The group believes that the terms of Bill 69 could lead to a 60 per cent increase in electricity rates over 10 years. This increase would have “potentially devastating repercussions,” according to the association.

ACEQ’s members include the Association québécoise des consommateurs industriels d'électricité, the Conseil du patronat du Québec, Manufacturiers et Exportateurs du Québec, the Aluminium Association of Canada, the Conseil de l’industrie forestière du Québec and the Chemistry Industry Association of Canada.

The industry’s fears seem to have the ear of Economy and Energy Minister Christine Fréchette, who said last December that she would be watching to see what the Trump administration would do.

“If tariffs are imposed, this will change the nature of the competitiveness of businesses in Quebec and, consequently, we want to see how things stand before going ahead, because the bill deals in particular with the question of tariffs,” said Fréchette at a press scrum in early December.

The purpose of Bill 69 is to amend the framework for the energy sector in order to meet the increased demand required to decarbonize the economy. Hydro-Québec plans to invest up to $185 billion by 2035 to double its output.

It is also changing the way electricity rates are set. Despite the increase in production that will be required, the Legault government said that residential rates will be capped at three per cent.

Instead, businesses will have to pay for the energy transition

This report by The Canadian Press was first published in French on Jan. 27, 2025.