Energy: Who Will Benefit from the Cap on Electricity Rate Hikes?

The government recently decided to extend the tariff protection measure for electricity consumers. Effective February 1, 2024, rate increases will be capped at 10 percent.

Households living in condominiums and using electricity or gas for heating may be eligible for assistance. 

In a press release issued on November 30, the government announced measures aimed at expanding energy assistance for individuals. As a result, electricity consumers with individual contracts—whether regulated-rate contracts or market-based offers indexed to the regulated rate—that can be canceled at any time without penalty will see rate increases capped at a maximum of 10% starting February 1, 2024.

For households in condominiums heated by gas or electricity that signed a contract at a high fixed rate during the crisis, the government is also providing financial support. They will receive additional assistance through the collective gas and electricity price caps. Thus, if their rate exceeds the level of the regulated electricity rates for 2024 or the level of the gas price cap set for the first half of 2023 plus 30%, the government will cover 75% of the difference.

Subject to any changes, individuals will not need to take any action: those who were already eligible for these measures in 2023 will automatically have the cap applied by their provider in 2024. For those who were not yet eligible, an eligibility form must be completed; it is available on the provider’s website. 

Originally introduced in 2021, the electricity price cap—which was set to expire on December 31, 2023—successively limited price increases to 4% as of February 1, 2022, and then to an average of +15% as of February 1, 2023.