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Just before announcing his resignation in September, super-minister Pierre Fitzgibbon introduced Bill 69 on energy at the National Assembly. In addition to attacking Hydro-Québec's exclusive right to sell electricity, many experts claim that Bill 69 will considerably increase consumers' electricity bills.
In fact, the plan is to make more room for electricity production by private companies. We already know from other countries and provinces, such as England and Ontario, that privatization in the energy sector leads to significant upward pressure on electricity prices.
Currently, there are already private companies producing electricity and selling their surpluses to Hydro-Québec. Their primary aim is to make a profit, and Hydro-Québec usually buys their electricity at a loss.
On the other hand, the CAQ is already forcing Hydro-Québec to sell its electricity at preferential rates to companies like Northvolt, which pays 5 cents per kWh rather than the regular rate of 9 cents per kWh.
As a result, consumers have to make up for the state-owned company's losses by paying more on their electricity bills.
Jean-François Blain, who analyzed bill 69 for the Institut de recherche et d'informations socioéconomiques (IRIS), projects that its impact on rates will be such that a cumulative increase of 75% after 12 years is expected.
This increase would be due to the investments required for the targeted 33% expansion of electricity production. This would require annual investments of $15 billion, compared with Hydro-Québec's current annual growth rate of around $4.5 billion.
Pierre-Guy Sylvestre, union consultant and research economist with the Canadian Union of Public Employees (CUPE), warns against the growing share of electricity generated by the private sector:
“If we allow the private sector to generate electricity, we'll be transforming an essential public service into an industry subject to market fluctuations. Electricity will cost more to produce, with a major impact on bills.”
“Bill 69 opens the door even wider to privatize another 10,000 megawatts in the years to come. So, by 2035, we should have at least 5,000 more megawatts of private production. So we'd go from 10% private production to 17%, and that's a minimum.”
In Quebec, 1 in 7 households is unable to pay its electricity bill, or does so at the expense of other basic needs. This makes it difficult to see the bill 69 as an initiative aimed at meeting people's needs.
Indeed, the public consultation with the government on Bill 69 was biased, says the SCFP economist. Among the organizations invited to participate were the Employers Council and economic development associations.
SCFP, although it represents 16,000 Hydro-Québec workers, was not invited to take part in the consultation. “They left out at least 15 civil society associations. For us, this is nothing more and nothing less than a sham of public consultation,” denounces the economist.
This decision to leave more room for private electricity producers is part of a broader logic promoted by the CAQ to attack public services. According to Sylvestre, François Legault wants to govern the province like a business:
“Look at health care: we've appointed someone from the private sector to head of Santé Québec. We're not decentralizing, we're not leaving any room for communities with the CAQ. It's a government of accountants for and by accountants and for and by private firms, in our opinion.”