Peace Power Blog

The Role of the Government of Canada in Electricity and Gas Regulation

Written by Peace Power | May 12, 2023 9:40:46 PM

It can sometimes get overwhelming for us Canadians to truly understand the relationship of the Government of Canada with respect to the regulation of gas and electricity distributions. While there are so many facts and details to comprehend, it can be easily summed up in a nutshell for you. 

The Canadian government is heavily involved in the regulation of electricity and gas to ensure the efficient distribution of these essential services to Canadians. According to the Canadian Constitution, electricity and gas regulation in Canada is the responsibility of both the federal and provincial governments. Regulation of the electricity sector is primarily at the provincial level, and each province has jurisdiction over electricity generation, intra-provincial transmission, and distribution. This includes most policies related to pricing and the types of power generation used. Alberta and Ontario generate and distribute most of the electricity in Canada.

Provincial governments are responsible for regulating electricity and gas on a provincial level. They are in charge of the production, transmission, and distribution of both electricity and natural gas. Provincial governments create and implement laws that address the energy sector's costs, dependability, safety requirements, environmental impact, and consumer protection.

For Canadians to receive efficient regulations and policies, the federal and provincial governments frequently cooperate through organizations like the Council of Ministers Responsible for Energy and Mines (CME) and the Canadian Energy Regulator (CER). These organizations make things easier when it comes to information sharing, policy development, and regulatory oversight across jurisdictions.

In recent years, the Canadian government has prioritized energy efficiency, renewable energy, and lowering greenhouse gas emissions. The federal and provincial governments have put in place several laws and policies to encourage the growth of clean energy, including renewable energy objectives, carbon pricing schemes, and incentive schemes for energy efficiency and the use of renewable energy.

To sum up, the federal and provincial governments of Canada play a critical role in establishing the regulatory distribution of gas and energy and ensuring that consumers in Canada have access to a dependable, cheap, and sustainable supply of gas and electricity while also taking consumer and environmental protection issues into account.