Trump tariff threat delays study of Quebec energy bill

Minister Christine Frechette responds to the Opposition during question period, at the legislature in Quebec City. (Jacques Boissinot/The Canadian Press)

The Quebec government is halting the study of Bill 69 — a bill designed to help the province double its electricity production — in the wake of US president-elect Donald Trump’s tariff threats.

“The arrival of the new administration in the United States has changed the situation somewhat. If tariffs are imposed, this will change the nature of the competitiveness of companies in Quebec,” said Energy Minister Christine Fréchette.

“Consequently, we want to see how things stand before moving forward, because there is the question of tariffs in the bill.”

The minister said that “a few elements” could be modified in the legislation. “But we have to see to what extent the possible tariffs on Quebec exports will change the situation, or not,” she added.

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

Up to $185 billion by 2035

Bill 69 is meant to amend the energy sector framework to meet the increased demand required to decarbonize the economy. Hydro-Québec plans to invest up to $185 billion by 2035 to double its output.

It is also changing the way electricity rates are set. Despite the increase in production that will be required, the Legault government said residential rates will be capped at 3 per cent. Instead, businesses will have to pay for the energy transition.

The bill was tabled by the former Minister for the Economy and Energy, Pierre Fitzgibbon, last June. After his resignation in September, Fréchette replaced her colleague at the last minute to lead the specific consultations on the bill. The detailed study is still pending.

Before his resignation, Fitzgibbon had spoken of “significant increases” in rates over the next five or 10 years.

‘The government is entangled’

The Quebec Liberal Party (QLP) called out the bill's delay.

“For our part, we've been ready for months, but it's clear that the government is bogged down in the issues surrounding the Fitzgibbon legacy. We've lost a whole year of progress on the energy future because of the [Coalition Avenir Québec]’s dithering,” said Liberal House leader Monsef Derraji.

“That the government wants to revise the bill in light of recent developments in the United States may not be a bad idea. But really, it is a Band-Aid on a gaping wound. This bill needs to be withdrawn,” Parti Québécois member Pascal Paradis told The Canadian Press.

This report by The Canadian Press was first published in French on Dec. 2, 2024.