As the Conservative Government continues to tout a “new and better deal” with Quebec on the Churchill River, the Official Opposition is very concerned by reports that Quebec will pay less for electricity than it would have under the 2024 MOU.
As acknowledged in Monday’s announcement, the deal outlined today is largely consistent with the framework set out in the 2024 MOU, and we are pleased the Conservative Government now recognizes that it was a good deal all along. However, the Official Opposition is asking why Quebec is now paying less than it would have under the 2024 MOU.
According to Hydro-Quebec’s news release, “the 2026 DCIA will therefore strengthen Hydro-Québec’s energy portfolio for the next 50 years at a cost lower than that of the 2024 agreement.”
Link: (https://news.hydroquebec.com/news/press-releases/all-quebec/power-generation-labrador-hydro-quebec-secures-quebec-energy-future-competitive-cost.html)
Documents from Hydro-Quebec reveal that under the 2024 MOU, Quebec would have paid 6 cents per kWh. Under the new 2026 MOU, Quebec will pay 5.5 cents per kWh, adjusted for inflation.
That raises an important question. “If this is a ‘new and better deal’ for Newfoundland and Labrador, why did the Conservative’s agree to a lower price for Quebec? Premier Wakeham needs to explain what changed, why the price was reduced, and what Newfoundland and Labrador is receiving in return”, says Opposition Leader John Hogan.
The additions to the MOU announced yesterday appear to greatly favour Quebec in other ways, including Quebec receiving an additional 3,500 MW, while Newfoundland and Labrador receives only 760 additional MW. According to La Presse, the federal government will pay Quebec $6.5 billion, while Newfoundland and Labrador will receive only about half that amount.
The Official Opposition looks forward to debating the details in the House of Assembly next month.
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