Régie de l’énergie

Utilities like Gaz Métro require a system infrastructure to provide their services.  The costs of constructing and maintaining these systems can be substantial.  For this reason, it is uneconomical from a public perspective to allow more than one enterprise to develop systems for the same functions. This means that certain enterprises have a monopoly because they alone can distribute a certain product to consumers.

The mandate of a regulatory body is, among other things, to regulate the activities of enterprises that have a monopoly. These economic regulatory bodies therefore fulfil an essential need of having an independent credible organization to oversee the activities of public utilities.  In order to do this, they operate in a manner that is somewhat similar to the legal system.

In the Quebec energy industry, until the spring of 1997, only natural gas was subject to this type of regulation through the Régie du gaz naturel.

In 1997, the Régie de l'énergie was therefore created to regulate the entire Québec energy industry and now also oversees the electricity, fuel oil and steam sectors.

In terms of electricity, the Régie de l'énergie is only concerned with transportation and distribution.  Electricity production is an unregulated activity.  In terms of fuel oil and steam (steam supplied or distributed by pipes for heating purposes), the Régie de l'énergie's role is limited mainly to monitoring prices.

Régie de l’énergie and Gaz Métro

Part of the role of the Régie de l’énergie du Québec is to regulate the transmission and distribution of electricity and the distribution of natural gas in Québec. In particular, it must:

• Ensure sufficient supply
• Set the rates and conditions under which service is offered
• Investigate consumer complaints regarding the application of those rates and conditions
• Approve investment projects that exceed a given threshold.

Different organizations representing the interests of natural gas consumers, the environment, and the public are invited to participate in the process. Gaz Métro firmly believes in this approach and acts in a spirit of collaboration and accountability conducive to constructive dialogue.

As a result, a true partnership has emerged with these groups to create a healthy regulatory climate envied by many regulated distributors. In particular, this partnership has facilitated innovation by establishing a regulatory framework to improve Gaz Métro’s performance while integrating important commercial, environmental and social concerns.

The partnership has also established the Energy Efficiency Fund, financed by Gaz Métro’s productivity gains, which prioritizes subsidies forlow-income residential customers as well as innovative community and social projects.