No question of touching the electricity rates, ” said Pierre Moreau

File Photo, Simon Clark
Pierre Moreau on the export of electricity to cope with the spiral of death, which will threaten eventually the profitability of Hydro-Québec.

Charles Lecavalier

Sunday, 21 January 2018 22:24

UPDATE
Sunday, 21 January 2018 22:24

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Pierre Moreau has not the intention to review the tariff grid of Hydro-Quebec to enable the corporation to better wipe off the shock of the ” death spiral “.

“It is not there. We don’t want to aim at the electricity rates, ” says the minister of natural Resources, during an interview with our parliamentary Bureau.

Rather, we believe that the company should diversify its revenues in order to avoid the worst. This would, therefore, thanks to the export, the arrival of power centres in data-intensive and judicious investments abroad that Hydro-Québec could make a profit, despite the decline in residential consumption.

It is as if the wish of the CEO Éric Martel, who said in an interview that “the rates and regulation” should be part of the reflection on the transformation of energy that hits Hydro-Québec. It was not the intention not the use of smart meters in order to sell more expensive electricity during periods of peak demand.

The ” death spiral “

The Journal revealed last week that Hydro-Quebec would face in the coming years at a “major upheaval” : the self-production of low-cost electricity with solar panels.

The problem : the cost of Hydro-Québec are fixed. Its electric wires and meters, will still be maintained despite the drop in sales. The ” death spiral “, it is that this decrease will drive up the price of electricity, which in return will make it even more profitable systems of autoproduction.

“Pay the true cost “

To avoid this shock, Pierre-Olivier Pineau of HEC Montreal proposes a revision of the tariff. Currently, the electricity bill includes a fixed fee of $ 12 which must be added the consumption of electricity. The researcher believes that the fixed fee should be higher and based on the maximum power consumed.

Photo courtesy

Pierre-Olivier Pineau, A Researcher

For example, the owners of a house that activate the dryer while charging their Tesla and heating their spa will casquer a basic monthly fee to be higher. “The people will remain connected to the network, but will consume less. It will be necessary to pay the true cost of the connection, ” explains Dr. Pineau.

“I understand, Mr. Moreau, it is in the pre-election year. Talk about electricity rates, it’s a slippery slope awful. As soon as a politician speaks, the others jump on him by saying that we will attack to quebec. He wants to avoid the controversy, ” says Mr. Pineau.