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David Boudeweel-Lefebvre

Avoiding an energy and economic crisis

Québec's Bill 69, which aims to radically alter the supply and distribution of energy, continues to provoke strong and varied reactions across the province. This piece of legislation, which also restrains Hydro-Québec rates, highlights the energy challenges facing Québec. These issues affect businesses and households alike. As Québec wakes up to an increasingly complex energy reality, both energy costs and businesses' ability to pay have become key topics of public debate.


Historically, Québec has benefited from relatively cheap energy, a significant competitive advantage on a global scale. However, Québec companies are now facing rising energy costs, impacting their competitiveness. Not only do these increases threaten to curb business growth, they also jeopardize the preservation of many jobs in key sectors. The question has become urgent: how can Québec continue to support its businesses while meeting the growing demand for energy?


What is currently being played out in parliamentary committees is crucial. The decisions made under Bill 69 could shape Québec's energy and economic future for decades to come. Yet it is worrying that the debate too often focuses on residential rates, obscuring the impact these decisions may have on the commercial and industrial sector. The ability of businesses to absorb Hydro-Québec rate increases is becoming a central issue, and if they fail to remain competitive in the face of international competition, this could lead to plant closures and massive job losses.


Another major fear raised by Bill 69 is that of Hydro-Québec taking on even more power in the energy market. Indeed, many economic players fear that the state-owned company will gain even greater control over rate setting and supply management. Rate arbitrations are complex, and the risk of concentrating too much power in Hydro-Québec's hands could have adverse effects on the diversity of players in the energy sector.


The government has an essential responsibility in this matter. It must ensure a balance between consumer protection and the survival of local businesses. Tariffs must be set in such a way as to avoid overcharging businesses, while guaranteeing fair access to energy for households. The parliamentary committee raised some important questions on this point, not least the dangers of an energy policy focused on managing scarcity and decline, rather than sustainable economic expansion.


Québec finds itself at a decisive turning point. Energy shortages are already beginning to have a real impact on prices and resource availability. This bill and its long-term effects must not only respond to the current situation, but also anticipate future needs. Alternative solutions will have to be considered, whether in the form of new energy sources or structural reforms to prevent Québec from becoming trapped in a permanent energy crisis.

 

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