Feds fail to address problems with Clean Electricity Regulations

Calgary, Alberta, December 17, 2024 – The Clean Electricity Regulations (CER) released today by the federal government have failed to take into consideration the serious concern raised by the electricity sector regarding affordability, reliability and safety of the grid and do not account for regional differences in provincial electricity markets. This is particularly troublesome, as it could result in increased costs for consumers and small businesses, hamper the electrification of our economy, and hinder Canada’s ability to diversify our economy though projects such as data centers.

The Calgary Chamber and our members remain concerned that the Clean Electricity Regulations will have significant economic consequences within Alberta, as they will impede the reliability of the grid and the affordability of electricity, throughout the province,” says Deborah Yedlin, President and CEO of the Calgary Chamber. “As Canada’s only deregulated electricity market, the one-size-fits-all approach of the regulations does not adequately account for regional differences in electricity markets. and will have a greater impact in Alberta relative to other jurisdictions in the country. This is unacceptable to businesses and households across the country.”

While it is evident in the regulatory impact analysis statements (RIAS) Environment and Climate Change Canada made attempts to address some of the serious concerns raised through engagement with industry, the changes only signaled to industry a recognition of concern, but did not move nearly far enough to address these concerns. As such, the regulations remain entirely unworkable.

Of particular concern is the lack of flexibility in the regulations, including:

• The date in which the Clean Electricity Regulations come into force.
• Overly restrictive timeline for compliance with the proposed end-of-prescribed-life performance standard.
• The capture efficiency benchmark of 65/GWh until 2050, for operations with abatement technologies.
• The ministerial rather than expert oversight regarding emergency provisions.
• The lack of specific modelling that reflects Alberta’s deregulated electricity market. 

Today, electricity generated in Canada is over 84 per cent non-emitting, demonstrating industry’s commitment to emissions reductions and content that these regulations are not required for industry to advance emissions reductions. Further, Alberta achieved its objective of transitioning away from coal power ahead of schedule, reflecting industry's commitment to decarbonization.

As such, it is the view of Calgary’s business community that the CER is unworkable in its current state and must be withdrawn to ensure affordability, reliability and safety for all Canadians and Canadian businesses.

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