That’s a good question, with a fairly complex answer.
Technically, a rate freeze would not have a direct impact on costs, but would result in a shortfall.
Rates are used to collect the revenue required to cover incurred expenses to supply electricity to our 4.2 million customers throughout Québec.
If these expenses increased (inflation, required new supplies, etc.) and our revenues remained the stable due to a rate freeze, there would be a shortfall.
To balance expenses and revenues, we would have to reduce our expenses either by improving our efficiency, which we already do, or by cutting services offered to our customers, which is not desirable.
It’s worth noting that by improving our working methods, we were able to limit the rate increase to 0.7% this year.