(Montreal) The Régie de l’énergie approves a lower rate increase than what Énergir requested in order to take into account revised operating expenses and the update of the natural gas distributor’s financial strategy.
Thus, the Régie sets the rate increase at 6.4% as of 1er December 2022 for all services, which represents a decrease of 1.4 percentage points compared to the rate increase that had been requested by Énergir.
At the end of the public review process, the Régie reduced the revenue required in the application by the natural gas distribution company in Quebec by $15 million.
In 2021, the Régie had also approved a significant increase, to 15.6%, while Énergir requested an overall increase of 17.7%.
The Régie de l’énergie rendered its decision on Friday, which relates in particular to the setting of Énergir’s rates for the year 2022-2023 and the approval of its supply plan 2023-2026.
We also learn that the Régie agrees to modify the terms of the Effective Innovation program, on advances in energy saving, in order to allow Énergir to participate in projects outside Quebec.
According to the Régie’s document, Énergir analyzed the low participation in the program over the past five years and concluded that there were “missed opportunities”.
For example, Énergir has not been able to collaborate on pilot and demonstration projects carried out in the United States and elsewhere in Canada, for new “ultra-efficient” natural gas heating appliance technologies that gradually appearing on the market,” the document reads.
Énergir emphasizes that the objective is to test effective technologies that can generate spinoffs in Québec, and that the change would comply with the regulatory framework since it is useful for the operation of its distribution network.
The Régie modifies the new terms and approves an overall budget of $42.7 million for the implementation of Énergir’s energy efficiency measures.