Guides · 2026-08-14
Hydro-Québec Rate D: why the second tier is the number that matters
Most people know roughly what they pay per kilowatt-hour. Almost nobody uses the right number when estimating what a heating change is worth, because Rate D does not have one price.
Getting this wrong understates a heat pump's value by a third or more.
The two tiers
Rate D charges a lower price for the first 40 kWh per day, multiplied by the number of days in the billing period, and a higher price for everything beyond that. There is also a fixed daily system access charge.
Effective 1 April 2026 the first tier is 7.065 ¢/kWh and the second is 11.142 ¢/kWh, with a system access charge of 46.154 ¢ per day. The second tier is about 58% more expensive than the first.
Savings come off the top, not off the average
If your consumption puts you into the second tier — which any electrically heated Quebec home does through the winter — then the marginal kilowatt-hour, the one you stop consuming, is priced at the second tier.
So heating electricity you avoid is worth 11.142 ¢, not your blended average of perhaps 9 ¢. Using the average quietly discounts the saving by roughly a fifth.
When the first tier is the honest price
A small condo that never crosses 40 kWh per day, even in January, genuinely stays in the first tier, and valuing its savings at the second-tier price would overstate them.
That is why our calculator selects the tier from your annual consumption and lets you override it. A tool that always applies the higher price is flattering rather than accurate.
The charge that does not matter here
The daily system access charge is identical whether you heat with baseboards or a heat pump. It is a real cost, but it cancels out of any comparison between the two, so including it in a savings figure would be padding.
We exclude it deliberately, and say so on the calculator.
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FAQ
Where do I find my actual consumption?
The total kilowatt-hours for the last 12 months is on your Hydro-Québec bill and in your Customer Space. Using your real figure is far better than any preset.
Do rates change?
Yes, annually on 1 April. The figures above are the rates effective 1 April 2026. If you are reading this after the next adjustment, check the current rate schedule before relying on the numbers.
Does the winter credit option change this?
It can, if you are enrolled. The Winter Credit Option pays for curtailing during peak events and has its own arithmetic, which sits outside a simple heating comparison.