The newly appointed premier of Newfoundland and Labrador, Tony Wakeham, wasted no time in addressing a pressing issue by announcing the commencement of a review of the draft energy agreement with Hydro-Québec in the upcoming weeks.
Tony Wakeham officially took office on Wednesday, succeeding the previous Liberal government after the Progressive Conservative Party secured a narrow victory in the recent provincial election, marking the end of a decade-long Liberal administration.
Speaking to the press, Wakeham shared his intention to engage with his cabinet over the next two weeks to determine the stakeholders and scope of the impending review process.
Expressing his commitment to serving the best interests of Newfoundland and Labrador, Wakeham emphasized the importance of an independent review to secure an optimal agreement for the province. This call for an independent review has been persistent since the unveiling of the draft agreement by the previous government in December.
The proposed agreement outlines that Hydro-Québec would make a substantial payment of around $38 billion for the electricity generated at the Churchill Falls facility in Labrador. Additionally, Hydro-Québec would oversee future developments along the Churchill River, in collaboration with Newfoundland and Labrador Hydro.
Negotiations between the two state-owned entities are ongoing, with the target of finalizing enforceable agreements by April 2026. Wakeham has pledged to put any final agreement to a public referendum, although the potential impact on the negotiation timeline remains uncertain.
While confirming discussions with Newfoundland and Labrador Hydro representatives and plans for future meetings, Wakeham clarified that he has no current plans to engage directly with Hydro-Québec.
The preliminary agreement aims to replace the existing contract, which allows Hydro-Québec to purchase the majority of energy from Churchill Falls at notably low rates, a sore point that has fueled resentment and distrust in the region.
Former Liberal leader John Hogan, who briefly served as premier before the election, strongly supported the new draft agreement and advised Wakeham to initiate talks with Hydro-Québec promptly.
Emphasizing the need for transparency in negotiations with Hydro-Québec, Hogan cautioned Wakeham against jeopardizing agreements that may fall foul of public sentiment post-referendum.
With significant investments at stake, the province faces critical decisions regarding its energy future, with Wakeham’s priority being to secure an advantageous agreement that benefits Newfoundland and Labrador.
