QUEBEC CITY — Quebec’s plan to increase electricity rates for businesses is facing sharp opposition from industrial consumers who argue it could hinder the province's economic competitiveness. The Alliance pour la compétitivité énergétique du Québec (ACEQ), representing various manufacturing sectors, believes the proposed measures pose serious risks during sensitive economic times.
At a press conference on January 27, 2025, held in Montreal, the ACEQ outlined their concerns over Bill 69, which they say could lead to electricity rate hikes of up to 60% over the next decade. This substantial increase is being proposed just as the economy is feeling the pressures of U.S. President Donald Trump's administration, which has made threats about imposing tariffs on Canadian goods.
"We’re now facing a change of paradigm in the North American economy," stated Jean Simard, president of the Aluminum Association of Canada, part of the industrial alliance urging the government to reconsider its approach. The ACEQ consists of several prominent groups, including the Association québécoise des consommateurs industriels d'électricité and Manufacturiers et Exportateurs du Québec.
The industrial sector fears these anticipated rate increases will arrive at the worst possible time, potentially impacting jobs and production. According to the ACEQ, the planned increases come at a juncture when tariffs are already looming under Trump's policies, threatening to destabilize Quebec's economy even more.
Christine Fréchette, Quebec’s Minister of the Economy, Innovation, and Energy, has acknowledged the concerns from the industrial sector. Last December, she indicated her awareness of the potential tariffs from the Trump administration and how they could adversely affect Quebec’s businesses: "If tariffs are imposed, this will change the nature of the competitiveness of businesses in Quebec," she noted.
The crux of the controversy stems from Bill 69, introduced last summer, which aims to revise the province’s energy framework as part of broader efforts to double electricity production to accommodate increasing demands and to meet decarbonization targets. While the government has indicated residential electricity rates would remain capped at 3%, businesses are set to face the brunt of these costs.
Manufacturers have expressed acute anxiety over the situation, fearing they may have to freeze investments or even cut production due to rising operational costs. Julie White, chief executive of the Manufacturiers et Exportateurs du Québec, emphasized how the uncertainties surrounding Trump’s economic policies are forcing businesses to reevaluate their positions.
Simard elaborated on the urgency, stating, "Such an increase, combined with President Trump’s measures to boost American competitiveness... would deliver an additional blow to our businesses, with potentially devastating consequences." This declaration highlights the precarious state of many industries within Quebec, particularly those relying heavily on electricity as part of their operational framework.
Quebec has historically benefited from some of the lowest electricity prices in North America, primarily due to Hydro-Québec's older generating stations and favorable contracts. The upcoming legislative changes, particularly with the elimination of price freezes on certain power blocks designated for industrial use, threaten this competitive edge.
With the new regulations, Hydro-Québec is empowered to adjust rates based on operational costs starting in 2026, raising concerns about future pricing structures. This uncertainty looms large as industrial players advocate for stability to navigate the uncertain economic terrain.
Fréchette’s comments reflect the provincial government’s awareness of the delicate balance it must maintain between energy reform and economic viability. Citing the shifting winds of trade and policy under the current U.S. administration, she remarked on the need for careful evaluation before moving forward with new legislation.
While the question remains whether the government will heed these warnings, the businesses and industries impacted stand firm on their call for immediate action. They are urging Premier François Legault to take their concerns seriously and adjust the government's strategy on electricity pricing.
The calls for reconsideration highlight not just the immediate economic concerns but also strategic long-term implications for Quebec’s standing as a leader in clean, affordable energy—a position the province has long leveraged to attract and maintain industrial giants, particularly in the aluminum sector.
What happens next will be pivotal. With uncertainty clouding Quebec’s operational environment, stakeholders eagerly await the Legault government's response to these calls and the potential revisions to Bill 69.