(Quebec) Hydro-Québec CEO Michael Sabia stole the show at the start of the parliamentary session: he delivered a hard-hitting message to Premier François Legault, criticizing his government for giving too much energy to new companies, foreign or not, to the detriment of the decarbonization of existing industries. “Cards on the table […]I think we need to rebalance things,” he said.
“Up until now, the government has placed a lot, a lot of emphasis on new businesses. It comes back to the question of the balance between decarbonization and new industries. We will work more closely with the minister, with the prime minister, on all of these issues in the future,” he said during his appearance before the parliamentary committee during the study of the energy bill on Tuesday.
Quickly, during question period, François Legault confirmed this clash of visions. While companies are jostling to obtain electricity, either to “decarbonize” or to “set up in Quebec”, the Prime Minister has only one criterion for choosing who will win the bid.
How do we make the choice? We look at the companies that have the most impact on Quebecers. If one company creates jobs at $50 an hour, and another at $20 an hour, I choose the one at $50 an hour.
François Legault, who was responding to a question from the interim leader of the official opposition, Marc Tanguay
Baptism of fire
Michael Sabia took advantage of the baptism of fire of the new “superminister” of Energy and Economy, Christine Fréchette, to make it clear to her, in public, that he did not agree with the direction that the “most important project in the history of Quebec” is taking, as François Legault said last week.
PHOTO EDOUARD PLANTE-FRÉCHETTE, THE PRESS
The new Minister of Economy, Innovation and Energy, Christine Fréchette
Mme Fréchette asked him what he thought of Quebec’s positioning in the global context of energy transition. He replied that, thanks to Jean Lesage, Robert Bourassa and René Lévesque, Quebec has “such significant” energy production, at an “extremely low” price, which gives it an advantage that is “extremely valuable for the future.”
The question before us at Hydro-Québec, and the question before you, and certainly within the government, is what is the best way to capitalize on this competitive advantage.
Hydro-Québec CEO Michael Sabia
According to him, it is “essential” to use this energy to decarbonize existing industries in Quebec. In its plan, Hydro-Québec estimated that 75% of the new energy would be allocated to decarbonization, therefore intended for companies already in Quebec, to allow them to reduce their use of natural gas, propane or fuel oil by replacing these polluting energies with electricity.
But that is not what happened. Former Minister Fitzgibbon instead used this energy in his economic strategy to attract multinationals, such as Northvolt, the opposition parties reproached this morning.
“Dollarama” of electricity
Mr. Sabia makes the same observation.
Do we currently have the balance we need for the future between decarbonization and economic growth? […] Is this distribution, this balance reflected in all the decisions to date on the allocation of megawatts? It is not entirely clear to me.
Michael Sabia, CEO of Hydro-Québec
This is reminiscent of the clash between Mr. Fitzgibbon and former Hydro-Québec CEO Sophie Brochu, who was concerned about economic development turning Quebec into an electricity “Dollarama.” She slammed the door in 2023 and was replaced by Mr. Sabia.
“Honestly, cards on the table, I think that in the allocation of megawatts to date, [pour] existing industries […] “The response was not significant enough to their request. I think we need to rebalance things,” he told Christine Fréchette.
The Liberal opposition accuses the Legault government of having sold off Quebec’s energy by exporting it to the United States and selling it to foreign companies, while Quebec SMEs do not have access to it.
A prime minister who wants to be a nationalist would never kneel before foreigners to turn around and realize that he has sold what he did not have, and turn around and say to his own people, by the way, you will pay for it.
Marwah Rizqy, Quebec Liberal Party MP
Québec solidaire MP Haroun Bouazzi pointed out that former Minister Fitzgibbon claimed that the new energy production was intended for the electrification of Quebec’s economy, when in fact he has already reserved “2,500 megawatts of energy” for multinationals, and that this energy will be sold for nearly 5 cents per kWh when it will cost 11 cents to produce.
“Someone is going to pay for that difference,” he said.
On the question of tariffs, Mr. Sabia, however, sides with François Legault and contradicts former minister Pierre Fitzgibbon.
“Let me be clear: residential rates will be capped at 3%. For commercial and industrial customers, we’re talking about between 4 and 5%. That’s exactly what I said when we tabled the action plan. There’s nothing new,” Sabia said during his appearance before the parliamentary committee during the study of the energy bill on Tuesday.
He thus contradicts former Energy Minister Pierre Fitzgibbon, who stated at the end of August that “in five or ten years, yes, there will be significant increases.” “The question will be, at that time, how we allocate investment costs between industrial, commercial and residential. It’s a big debate, as you know,” he said.
“SMEs will have to pay a fair price,” she said.