On June 6th, Quebec’s Minister of Economy, Innovation, and Energy, Pierre Fitzgibbon, introduced Bill 69, aimed at ensuring “responsible governance of energy resources and amending various legislative provisions.”
This highly anticipated bill reverses some decisions made by the Legault government in its first term while providing a more coherent framework for future actions by Hydro-Québec, the private sector, and the government itself in the context of global decarbonization.
Key Aspects of Bill 69
1. A 25-Year Integrated Energy Resource Management Plan
The introduction of a 25-year integrated energy resource management plan is the most significant aspect of Bill 69.
This plan aims to align energy policies with evolving needs and climate goals, providing clarity for citizens and investors regarding the actions of various stakeholders.
While the plan is a welcome development, concerns have been raised about its review cycle of every six years, which some consider too infrequent in the context of urgent decarbonization efforts.
Additionally, the bill’s subordination of the climate change framework to the energy resource management plan raises questions about the prioritization of climate goals.
2. Accelerating Hydro-Québec’s Projects
Bill 69 removes the requirement for Hydro-Québec to use calls for tenders for its projects, instead granting the Régie de l’énergie the authority to validate contracts.
While this may streamline project execution, it also raises concerns about potential collusion and price manipulation risks.
3. Revising Electricity Tariffs
The bill restores the Régie de l’énergie’s power to determine electricity tariffs, albeit on a triennial basis instead of annually. A new fund, financed by taxpayers, will protect residential customers from tariff shocks. This shift in responsibility allows Hydro-Québec to safeguard its revenues, which have been impacted by the government’s cap on residential tariff increases.
4. The Role of the Private Sector and Dynamic Pricing
While the bill maintains the status quo for private electricity production, it allows Hydro-Québec to privatize its small hydroelectric plants. Additionally, the bill opens the door to dynamic pricing and constraints on power consumption in the residential sector to reduce peak demand.
A Step Forward, with Room for Improvement
Overall, Bill 69 represents a significant step forward in Quebec’s energy transition. However, concerns remain about increased ministerial power and the potential for further politicization of the energy sector. The upcoming parliamentary committee consultations offer an opportunity to address these concerns and refine the bill further.