Regulatory agencies
Utilities like Énergir require a system infrastructure to provide their services, and such infrastructures entail substantial investment to build and maintain. 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.
Agencies have therefore been mandated to regulate monopoly company activities. These economic regulatory bodies thus fulfil an essential need for an independent credible organization that oversees the activities of public utilities.
In exercising their role, regulatory agencies make decisions about network development, rate-setting and the use of underlying accounting methods that differ from those otherwise used by unregulated companies.
In Quebec, the Régie de l’énergie fulfills this role with respect to Énergir’s activities. The Canada Energy Regulator, for its part, oversees the activities of certain companies, including Champion Pipeline, an Énergir subsidiary. In addition, Énergir has indirect subsidiaries operating in the United States. These entities are themselves regulated by U.S. regulatory authorities.
Énergir's natural gas distribution activities in Québec are regulated by the Régie de l'énergie . The Régie de l'énergie was created in 1997 to regulate the entire Québec energy industry and also oversees the natural gas, electricity, fuel oil and steam sectors.
Énergir
Part of the role of the Régie de l'énergie 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 Régie's process. Énergir firmly believes in this approach and acts in a spirit of collaboration and accountability conducive to constructive dialogue.
Énergir is regulated by the Régie de l’énergie, which annually sets the transportation, load-balancing, distribution rates, while the supply, CATS. The Régie also oversees Énergir’s operating, network-development and natural gas distribution activities. As part of setting Énergir’s rates, the Régie establishes the authorized rate of return on deemed common equity. As well, Énergir’s supply plan is submitted to the Régie de l’énergie for approval on an annual basis. Énergir buys the natural gas required to supply its customers or receives natural gas from customers who have opted to secure their own supply of natural gas.
The regulatory process also enables the implementation of innovative solutions, such as energy efficiency, dual-energy systems, and renewable natural gas injection, which are key pillars in the context of energy resilience and the energy transition.
Intragaz
Intragaz operates the only two underground natural gas storage facilities in Quebec, both located within Énergir’s service territory. Énergir is also Intragaz’s sole customer. Intragaz’s rates are approved by the Régie de l’énergie, and its rate-setting methodology is based on its cost of service.
The Canada Energy Regulator (CER) is an independent federal energy regulator responsible for ensuring that pipeline, power line, and offshore renewable energy projects under the jurisdiction of Parliament are planned, constructed, operated, and abandoned safely and securely, while protecting people, property, and the environment. The CER also strives to reflect and respect Canada’s diversity, including Indigenous Peoples, regional realities, and the country’s bilingual character.
Énergir
Énergir's natural gas distribution activities in Québec are regulated by the Régie de l'énergie (see above). In addition, through subsidiaries, joint ventures and entities, Énergir is active in other business activities that are regulated by other agencies. Trans Quebec & Maritimes (TQM) and Champion Pipeline fall under the authority of the Canada Energy Regulator (CER).
Trans Québec & Maritimes (TQM)
Énergir holds a 50% interest in TQM, which operates a gas pipeline in Québec that connects upstream with that of TCPL and downstream with that of PNGTS and the Énergir-QDA network. Its activities are regulated by the CER.
Pipeline Champion
Champion, a wholly owned subsidiary of Énergir, operates two pipelines that cross the Ontario border and supply Énergir's distribution system in northwestern Québec. Champion's activities are regulated by the CER with respect to revenue determination, tolls, construction and the operation of its network.
Énergir's activities and facilities are subject to national, regional and local environmental laws, including the following:
In Québec
- The Cap-and-Trade System for Greenhouse Gas Emission Allowances Regulation (CATS) came into force on January 1, 2012. Under this Regulation, since January 1, 2015, Énergir has been required to cover the following greenhouse gas (GHG) emissions: (i) its own GHG emissions, (ii) emissions resulting from fugitive emissions and breaks on its network, and (iii) emissions attributable to the use or combustion of the natural gas it distributes, except for those covered by entities that are themselves emitters under the Regulation and that are attributable to the use or combustion of natural gas at facilities subject to the Regulation, or those attributable to the use or combustion of natural gas distributed by Énergir that is ultimately used outside Quebec. To meet these obligations, Énergir must either purchase GHG emission allowances or reduce its GHG emissions. Énergir takes the necessary measures to acquire the required emission allowances. This requirement creates upward pressure on rates and may affect Énergir’s ability to compete with other energy sources. The financial impact will depend, among other factors, on the market price of emission allowances. Accordingly, Énergir closely monitors the GHG emission allowance market and adjusts its purchasing strategy as needed.
Building our energy future together
Always on the move,
Énergir continues to forge ahead, offering diversified solutions and expertise to its customers and communities to help reduce Quebec’s carbon footprint.
Because we’re committed to moving forward together in the energy transition.