The federal government released new electricity regulations for Canada on December 17, 2024, that limit how electricity can be generated across the country. These latest measures fail to recognize provinces have jurisdiction over the development and management of electricity. The federal regulations are duplicative, inefficient and add to costs. The federal government should not use its shared role in managing and attending to environment effects to intrude into the generation of power which is in the province’s domain. The Business Council of British Columbia firmly opposes the new electricity regulations for Canada.

Beyond the jurisdictional overreach, BCBC is concerned the impact of the regulations for several other reasons:

1. Reliability at greater risk: Several independent provincial system operators confirm the intended outcomes of the regulations are not achievable without jeopardizing the reliability of electricity delivery to businesses and households.

2. Add to costs: The stringent regulations pertaining to generation will result in higher cost power for businesses and consumers at a time when the cost of living is a pressing concern for Canadians.

3. Diminished investment: Canada’s investment climate is increasingly uncertain and not conducive to attracting capital investment. Imposing supply-side constraints in the electricity sector will further undermine the investment for both domestic and foreign investors and result in market distortions in the electricity sector which will spill over to other sectors of the economy.

4. Regional Inequities: The one-size-fits-all approach does not recognize the unique energy system of each province and disproportionately impacts provinces like Ontario, Saskatchewan, and Alberta, which rely more heavily on fossil fuels to generate electricity.

5. Technological limitations: Technology neutrality is essential for fostering innovation, maintaining affordability, and achieving meaningful progress toward environmental goals. Regulations should be agnostic regarding fuel types so that electricity system can be operated safely and deliver energy in the most efficient and affordable manner.

6. Greenhouse gases: Greenhouse gas emissions management policies will be less effective in achieving their goals if they are focused on specific regions or sectors. As outlined, there is a real risk that the new regulations will crowd out options that can realize the same number of emissions reductions but at much lower costs.

It is important to recognize that Canada’s combined electricity systems are already 84% non-emitting, and that electricity represents less than 10% of Canada’s total emissions. The sector has made more progress in reducing emissions than any other sector in the country over the past two decades. We urge the government to set aside these new regulations and work collaboratively with the electricity sector to develop a more balanced approach that respects provincial roles and will not risk undermining investment and driving up costs.

The path to a cleaner energy system requires cooperation, not regulation. We remain committed to working with provincial and federal governments to develop and implement policies that recognize differences across the provincial electrical systems while not imposing unnecessary additional costs and protecting reliability.