A significant increase in electricity rates would have a devastating impact on the Côte-Nord economy, according to spokespersons for the manufacturing, aluminum and forestry sectors. The President of the Association which brings together Alouette in Sept-Îles and Alcoa in Baie-Comeau, Jean Simard, is concerned about the negative impact of Bill 69 for the regions.
An alliance for Quebec’s energy competitiveness fears harmful increases by Hydro-Québec and the government. Agreements with the most energy-intensive companies are negotiated piecemeal in Quebec, which will not change. Aluminerie Alouette, for example, is negotiating a renewal of its electricity supply contract with Hydro-Québec which expires in 2029.
Predictability for industries
“Large energy consumers here in the processing and mining sectors are exposed to international competition,” notes the President and CEO of the Quebec Aluminum Association of Canada, Jean Simard. “Large industries want predictability and pay a price that allows for fair returns and business growth. »
Each kilowatt sold to an aluminum smelter represents considerable benefits. “Aluminum smelters spend $4 billion in the Quebec economy,” says Jean Simard. The latter maintains great confidence in the future of the aluminum markets, but Quebec is not alone in producing the metal.
“The future is firmly in favor of aluminum because of the decarbonization markets. Wind turbines, solar panels… aluminum is very present in many infrastructures of the future. It would be unfortunate if Quebec was not there! »
“Tax the regions”
Six business groups are sounding the alarm over the consequences if Energy Reform Bill 69 is passed in its current form. The proposed changes represent a 60% increase in electricity rates for large industry. Energy constitutes more than 30% of the production costs of aluminum smelters, recalls Jean Simard.
The economy of regions like the North Shore and Saguenay-Lac-Saint-Jean would be imposed an unsustainable tax, according to the President and CEO of the Quebec Aluminum Association of Canada.
A significant increase would deprive Quebec of its comparative advantage in terms of energy costs, in addition to threatening the competitiveness of businesses and their power to attract investments, calculates the Alliance.
The organizations grouped under the banner of the Alliance for Energy Competitiveness of Quebec invite parliamentarians to reconsider certain elements of the bill. They agree on the opportunity that the energy transition represents for Quebec. The challenge, however, is to ensure that these rates are predictable, transparent and that they are based on the real costs assumed by Hydro-Québec.
