Rates for business customers served by off-grid systems north of the 53rd parallel (general rates north of the 53rd parallel)

Rates for small and medium power apply to the use of electricity by business customers when the electricity is supplied by an off-grid system located north of the 53rd parallel, except for the Schefferville system.

North of the 53rd parallel

Map showing municipalities affected by rates north of the 53rd parallel: Akulivik, Aupaluk, Inukjuak, Ivujivik, Kangiqsualujjuaq, Kangiqsujuaq, Kangirsuk, Kuujjuaq, Kuujjuarapik, Puvirnituq, Quaqtaq, Salluit, Tasiujaq, Umiujaq and Whapmagoostui.

Rates north of the 53rd parallel apply to the following municipalities:

  • Akulivik
  • Aupaluk
  • Inukjuak
  • Ivujivik
  • Kangiqsualujjuaq
  • Kangiqsujuaq
  • Kangirsuk
  • Kuujjuaq
  • Kuujjuarapik
  • Puvirnituq
  • Quaqtaq
  • Salluit
  • Tasiujaq
  • Umiujaq
  • Whapmagoostui

See additional rates or options

Energy-efficiency incentive rates

Off-grid systems usually run diesel generators to meet the electricity needs of the communities they serve. The technology used by these generating stations, their need for fuel and their remoteness translate into high generation costs.

In these regions, it’s more efficient and cheaper to heat rooms and water directly with fuel (oil or propane) than with electricity. The same goes for any other thermal application for which a source of energy other than electricity can be used.

Why?

Because it takes a generating station a lot more fuel to generate the electricity required to heat space and water than it does a fuel-fired heating and hot-water system installed in the same room. This also applies to any other thermal application for which electricity is used.

That’s why, north of the 53rd parallel, Hydro-Québec has a rate structure designed to encourage business customers not to heat space and water with electricity, nor to use electricity for any other thermal application for which a fuel would be more efficient.

Business customers in Nunavik who don’t have any government grants are eligible for the Efficient Energy Use Program. Under the Program, they end up paying 30% less than what it would cost them to heat with electricity, no matter how the price of fuel fluctuates.

And if they are eligible for the Efficient Energy Use Program, Hydro-Québec pays the maintenance and repair costs for their heating systems.

Helping you understand your electricity rate

Rates that apply to business customers served by off-grid systems north of the 53rd parallel

Business customers served by off-grid systems north of the 53rd parallel pay the same price for electricity used as customers on Hydro-Québec’s main grid, as long as they don’t use it for heating rooms and water or for any other thermal application, except to cook and conserve food:

  • Household appliances
  • Appliances used solely for air-conditioning for the comfort of occupants or the proper operation of heat-sensitive equipment
  • Industrial or commercial appliances used to cook and conserve food
  • Appliances used by light industry for manufacturing processes
  • Mortuary containers
  • Heating cables in water treatment plant intake pipes*
  • Equipment used to produce and maintain ice in arenas*

*For peak demand management purposes, however, such loads must be interrupted at Hydro-Québec’s request.

If electricity is used for heating space or water, or for any other unauthorized thermal application, Hydro-Québec applies the system access charge along with the price and method of calculating billing demand for Rate G, G9, M or MA, as the case may be, and any energy use is billed at 78.31¢/kWh.

Rate MA

When electricity is delivered from an off-grid system, Rate MA applies to any contract under which maximum power demand has ever exceeded 900 kW.

Hydro-Québec may require that a single contract cover all electricity delivered when used for similar purposes in the same location.

Structure of Rate MA

For Rate MA service contracts, Hydro-Québec applies Rate M to the billing demand and energy up to 900 kW and 390,000 kWh per monthly period.

Any additional consumption is billed as follows:

  • $31.41/kW and 21.70¢/kWh when the electricity is produced by a heavy diesel power plant
    or
  • $61.71/kW and 42.69¢/kWh in all other cases

The energy prices for Rate MA, expressed in cents per kilowatthour, are revised by Hydro-Québec on October 1 of each year, using the formulas set out in Article 7.11 of the Electricity Rates [PDF 4.83 MB].

Special connection charge for off-grid systems (except the one in Schefferville)

If you have a Rate G, G9, M or MA service contract, you shouldn’t heat space and water with electricity, because it will cost you more.

In fact, if you choose to use electricity for those purposes, you will have to pay, in addition to the general rates applicable north of the 53rd parallel, a “special charge for connecting to an off-grid system.”

More specifically, the “special charge for connecting to an off-grid system” applies in the following cases:

  • When your connection request concerns an off-grid system located north of the 53rd parallel, except the Schefferville system, and is for electricity used for heating space or water
  • When a space- or water-heating system is converted to electricity

It does not apply if your connection request is for temporary use of electric heaters to dry joints and paint during construction work.

Applicable charges

The “special connection charge for off-grid systems” amounts to the following:

  • $5,000 for the first 20 kW
  • $250 per kilowatt after that

See Section 20.1 of the Conditions of Service [PDF 4.69 MB].

More information

To find out more about rates applicable to business customers served by an off-grid system north of the 53rd parallel, see Section 2 of Chapter 7 of the Electricity Rates [PDF 4.83 MB], approved by the Régie de l’énergie.