Bad payers: Hydro expects to lose$ 112 Million

Mauvais payeurs: Hydro prévoit perdre 112 M$

Bad payers are still many with Hydro-Quebec. The State company expects to be deprived of revenue of 111.7 million $ in 2018, has learned The Sun.

According to documents filed with the Régie de l’énergie, it could be the year the dark since 2012.

In fact, Hydro-Québec estimates that bad debt will rise to $ 93.4 million this year. To this amount, it is necessary to add the discount on the sales to low-income households. It is expected to be approximately $ 18.3 million in 2018.

“We understand that there are customers who have difficulty paying, this is why we have process agreements. However, we need these people to comply with their agreement so that we could get outstanding amounts. Otherwise, it is the set of customers, which assumes these costs,” said Louis-Olivier Batty, press officer at Hydro-Québec.

According to the documents of Hydro-Quebec between 2012 and 2017, the distributor has been deprived of a revenue of over half a billion dollars, among other things, because of unpaid bills and discounts granted within the framework of its programme of support to households. This is exactly 686,7 million $ that have not resulted in its coffers.

Last year, the bill for the bad debts and discounts for low-income households amounted to $ 91.4 million. It is a difference of $ 20.3 million compared to the forecast for 2018.

“Which explains in part this increase is the fact that we are listening to our low-income clients. Yes, we give discount more generous than in the past,” says Mr. Batty.

In addition, the operational costs of the strategy for low-income clients are also not included in these amounts. They are expected to be $ 6.9 million this year.

“Which explains in part this increase is the fact that we are listening to our low-income clients. Yes, we give discount more generous than in the past ”


Louis-Olivier Batty, press officer at Hydro-Québec

Agreements

In recent years, the electricity distributor has tried to tighten the screws to the bad payers, reducing the number of days granted before the mailing of its notice of delay.

The State-owned company also saw its number of pay agreements customized with customers in financial difficulties to grow by 49 % between 2012 and 2017. In 2012, there were 154 000 clients who had entered into an agreement with Hydro-Québec, compared to 229 600 last year.

For 2019, the electricity distributor has asked the Régie de l’énergie for approval of a rate increase of 0.8% for the whole of its residential customers and its business clients.

By the numbers
2012 86.6 million $
2013 92.9 million $
2014 the 100.5 million $
2015 105,2 million $
2016 98.4 million $
2017 $91.4 million
2018 (projected) 111.7 million $
Note : the amount includes the bad debts, as well as discounts for low-income households

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