With fears of a recession on the horizon, Economy and Energy Minister Pierre Fitzgibbon is “staying on the lookout” and opening the door to help for small businesses (SMEs), if needed. However, their electricity rates will increase by 6.5% on Saturday, as planned.
Rates for Hydro-Québec business customers are increasing by 6.5% on Saturday to take inflation into account. The increase is criticized by the Canadian Federation of Independent Business (CFIB), which is calling on the government to cap the indexation of electricity rates at 3% for SMEs and households.
Electricity would only be one lever among many others on which the government can intervene, replies Mr. Fitzgibbon, on the sidelines of an announcement in Montreal on Friday. “You have to look at the whole work. »
The minister says he remains “on alert” amid economic uncertainty. “Recession or not, we’re not sure yet. You have to be awake. I watch the borrowing rate a lot. I look at SMEs that are having difficulties. There are no programs yet that we want to announce, but we are aware, we are on the lookout. »
The Minister does not believe that electricity tariffs are the best way to intervene. “Electricity rates: I don’t think we’re going to go there. Honestly, we still have the lowest rates in Canada. On the other hand, there are other mechanisms that can be put in place, if necessary. »
At the CFIB, there are concerns that the increase in rates will weaken the economy at a time when many SMEs are emerging from the pandemic. “It will increase prices for citizens [of goods sold in stores] and weaken small businesses which cannot make economies of scale and which receive cost increases from everywhere”, lamented its vice-president Quebec, François Vincent, on the sidelines of a parliamentary committee on the subject at the end of January.
The association points out that this is the largest increase in the electricity bill since it began monitoring tariffs in 1998.
Asked about the federal budget, Mr. Fitzgibbon said he was “pleasantly surprised” by the aid promised for clean energy, in particular a refundable tax credit of 15% for the projects of the electricity producers to which Hydro-Quebec would have access. .
“I think Hydro-Quebec will benefit from it. It will reduce the cost of electricity. Ultimately, everyone will benefit. »
The Trudeau government on Tuesday unveiled its response to the United States’ Inflation Reduction Act (IRA) with an $80 billion offensive over a decade. In addition to the credit for new electricity generation projects, other credits are allocated for the adoption or manufacture of clean technology, the production of hydrogen and carbon capture. “It’s definitely going to encourage investors, who maybe wouldn’t have come to Canada,” said Fitzgibbon.
