$1.2B Hydro-Quebec Class Action Gets Court Approval

A $1.2 billion Hydro-Quebec class action lawsuit was recently authorized to bring claims that the Canadian utility over-billed consumers between 2008 and 2013.

Plaintiff Nadia Mbenga Molima claims that Hydro-Quebec manipulated their data to increase electricity rates in the province.

According to Molima, Hydro-Quebec over-reported its expenses and under-reported its revenues.

The manipulated data was allegedly given to the Régie de l’Énergie, the independent group that sets electricity rates based on utility data.

According to the Hydro-Quebec class action, this inaccurate reporting resulted in higher electricity rates than what should have been authorized.

“Hydro-Québec thereby created positive returns for itself, and the government of Quebec, to the detriment of electricity consumers,” the Hydro-Quebec class action lawsuit claims.

Molima claims that, through the alleged over-billing scheme, Hydro-Quebec accumulated an additional $1.2 billion in profits during this time period.

Judge François P. Duprat recently authorized the Hydro-Quebec class action lawsuit despite arguments from the public utility.

Hydro-Quebec contends that the complaint is nonsensical because Molima is essentially seeking a refund of all positive returns. The company argued that there is no proof that the profits could have been foreseeable. A spokesperson for the company has reportedly noted that the energy board in Quebec approved all of their rate requests.

Judge Duprat rejected these arguments, ruling that he could not refuse authorization because the “request is not putting into question the tarifs.”

Plaintiff counsel has stated that the Hydro-Quebec class action was brought against the utility because electricity rates are the same for everyone and do not change based on the amount earned or spent in the way that taxes do.

“It’s a question of the equal distribution of riches that is important,” plaintiff lawyers said, according to the Montreal Gazette. “At the core, what we wanted to denounce was the fact that when the state needs revenue, it has to collect it according to the rules set out. And we feel in this case it did not do so.”

According to Class counsel, each Hydro-Quebec customer would receive around $150 if the class action recovers the full $1.2 billion gained by the utility.

In addition to these potential payouts, the Quebec government recently passed a bill that would help keep rates stable. Bill 34 ensures that Hydro-Quebec rates will be frozen for a year as of April 1, 2020. In the four years following, rates will reportedly only rise according to the rate of inflation.

The bill also provides around $500 million in refunds to eligible consumers. Eligible Hydro-Quebec customers include those who had at least one electricity bill in their name during 2018 and 2019. Consumers can request a refund on the Hydro-Quebec website and will reportedly receive a check as early as January 2020.

NOTE: All dollar amounts in this article are in CAD.

Are you a member of the proposed Class who was overcharged for utility services between 2008 and 2013? Share your experiences in the comment section below.

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