All of Hydro-Québec’s costs have an impact on three components of our rates: the fixed charge and the first and second rate tiers.
The savings generated by the rollout of Hydro-Québec’s next-generation meters are already completely reflected in the electricity rate. For the year 2016-2017, Hydro-Québec’s customers will, thanks to the meters, benefit from additional savings of $36 M, i.e., the equivalent of a rate reduction of about 0.3%, which limited the requested rate increase. For the entire project, Québec customers can expect to benefit from $81 M in annual savings. More precisely, since 2012, meter reading charges have decreased about 82%, from $101 M to $18 M in 2016, and this, despite a 5% increase in the number of contracts. According to the rate strategy approved by the Régie, the cost of each of the rate components (fixed charge and energy price) is established in such a way so as to recover all of the costs the company actually incurs to provide electricity service, no more, no less. Consequently, the savings generated are reflected across all of the three rate components.
Lastly, although the large-scale rollout of meters has been completed, certain meters have not yet been replaced. The costs attributable to conducting manual readings of meters are therefore expected to decrease even more.