(Quebec) The CAQ government on Wednesday disavowed the comments of Hydro-Quebec’s big boss, Michael Sabia, who is calling for a “rebalancing” in favor of local businesses in the allocation of electricity supplies.
Nevertheless, the new Minister of Economy and Energy, Christine Fréchette, who succeeded Pierre Fitzgibbon, said she still wanted to find a “balance point” between the demand of Quebec companies and foreign companies.
The Liberal Party (PLQ) presented a motion to the National Assembly on Wednesday in support of the comments of the president and CEO of Hydro-Québec, with the agreement of Québec solidaire and the Parti Québécois, but the Coalition avenir Québec (CAQ) blocked the tabling of the motion.
During question period, Mr.me Fréchette acknowledged, however, that she wants to ensure “a good balance between both Quebec and foreign companies (…) based on our rigorous criteria.”
PHOTO EDOUARD PLANTE-FRÉCHETTE, THE PRESS
The new Minister of Economy and Energy, Christine Fréchette
She also informed large Quebec industrial companies that they would have to accept the indexation of their rates, even if they demanded that the current freeze be maintained.
This whole debate follows the highly-noted statement by Mr. Sabia the day before, who criticized the government during the parliamentary committee’s study of Bill 69, which reforms the energy sector.
The Hydro boss suggested that the government was favouring new businesses to the detriment of local industries that have additional electricity needs to begin decarbonisation.
“That the National Assembly support the statements of Hydro-Québec President and CEO Michael Sabia to the effect that it is necessary to rebalance in favour of our companies compared to foreign companies in the allocation of megawatts of energy available for industrial projects,” stated the motion tabled Wednesday morning by Liberal MNA Marwah Rizqy.
Throughout the question period that preceded it, the Liberals continued to ask the CAQ members if they agreed with Mr. Sabia’s statements.
“Does Prime Minister François Legault realize that three-quarters of our manufacturing exporting companies will have to delay development projects or investments already planned?” asked Liberal leader Marc Tanguay.
“I just listed for him the advantages of having head offices in Quebec, of taking care of our bank, of our entrepreneurs. Does he remember the Prime Minister who, at the time, in 2016, said: Is Quebec becoming a branch economy? Is that what it means, basically, to move from an economy of conquerors to an economy of conquered people?”
In parliamentary committee, the Quebec Association of Industrial Electricity Consumers argued for maintaining the freeze on its rate that has lasted for 10 years, while the bill provides for indexation.
Its president, Jocelyn B. Allard, argued that American competitors benefit from a drop in the price of energy and that in the context of Hydro’s monopoly in Quebec, local businesses are “captive” and are therefore counting on the freeze to remain competitive.
“That worries me a little,” replied M.me Fréchette doubting that their business model is based on freezing prices.
“Is this really the only way for your members to continue their activities?”
In addition, the vice-president of the Canadian Federation of Independent Business, François Vincent, hoped that “businesses would stop being Hydro-Québec’s cash cows”, while residential consumers would benefit from a rate increase limited to 3%.
Similarly, the Fédération des chambres de commerce du Québec (FCCQ) demanded amendments to the bill, in particular for the Régie de l’énergie to start setting rates again and to remove the cap on residential customer rates, which were set at a maximum increase of 3%.
“The shield therefore protects no one: it only hides from domestic customers the increase in costs that they are experiencing, while business customers are taking the full brunt of it,” we can read in the FCCQ’s brief.
Earlier on Wednesday morning, the parliamentary leader of Québec solidaire (QS), Gabriel Nadeau-Dubois, accused the former Minister of Economy and Energy, Pierre Fitzgibbon, of having “messed up” Quebec’s energy planning.
Il a rappelé que lorsque la CAQ est arrivée au pouvoir, le Québec avait des surplus d’électricité, alors qu’aujourd’hui, il est en déficit énergétique.
La successeure de M. Fitzgibbon, Christine Fréchette, a maintenant « l’odieux de faire le ménage […] in this mess,” concluded Mr. Nadeau-Dubois.
“Who caused the mess? Who sold the equivalent of La Romaine twice in a few months at a discount? It was Pierre Fitzgibbon,” he castigated. “The reason we are in trouble is Pierre Fitzgibbon. (He) caused the mess in our energy planning.”
It was Mr. Fitzgibbon who tabled this bill at the very end of the parliamentary session in June, but he resigned last week and it is his successor, Christine Fréchette, who is now leading the study of this piece of legislation in parliamentary committee.