Trump tariff threat causes Quebec energy bill to be postponed

What is happening with Bill 69, which aims to allow Quebec to double its electricity production?

The Legault government’s energy centerpiece was not examined during the current parliamentary session and is not on the schedule for the last week of work.

Economy and Energy Minister Christine Fréchette cites Donald Trump to justify the delay.

“The arrival of the new administration in the United States changes things a bit,” Minister Fréchette said Monday. “If there are tariffs that are imposed, it changes the nature of the competitiveness of businesses in Quebec and, consequently, we want to see how things will be placed before moving forward, because there is in particular the issue of pricing in the bill.”

The minister of energy said “a few elements” could be changed in the legislative piece. “But we have to see to what extent the possible pricing element on Quebec exports will change the situation, or not,” added the minister.

President-elect Trump’s threat to impose 25 per cent tariffs on all Canadian products sent shockwaves across the border. Last week, Premier François Legault said that these tariffs would also affect Quebec electricity exported to the United States.

Up to $185 billion by 2035

Bill 69 aims to change the framework for the energy sector in order to meet the increase in demand required to decarbonize the economy. Hydro-Québec plans to invest up to $185 billion by 2035 to double its production.

It also changes the way electricity rates will be set. Despite the increase in production that will be necessary, the Legault government assures that residential rates will be capped at three per cent. It will instead be up to businesses to pay for the energy transition.

The legislation was tabled by former Minister of Economy and Energy Pierre Fitzgibbon last June. After his shock resignation in September, Fréchette had to replace her colleague at the last minute to lead the special consultations on the bill. The detailed study is still awaited.

Before his resignation, Fitzgibbon had mentioned “significant increases” in rates within five or 10 years.

‘The government is entangled’

The Quebec Liberal Party (PLQ) deplores the delay in the bill.

“For our part, we have been ready for months, but it is clear that the government is entangled in issues related to Fitzgibbon’s ‘legacy,’” ” said Liberal Leader Monsef Derraji in a written statement. “We have lost an entire year moving forward on the energy future because of the CAQ’s procrastination.”

“That the government wants to revise the bill in light of recent developments in the United States may not be a bad idea,” added the PQ’s Pascal Paradis in an interview with The Canadian Press. “But in reality, it is a band-aid on a gaping wound. This bill needs to be withdrawn.”

–This report by La Presse Canadienne was translated by CityNews