The future of an energy deal between Quebec and Newfoundland and Labrador hangs in the balance as Quebec’s economy minister warns of potential risks if the agreement is not finalized before the upcoming Quebec election.
Christine Fréchette emphasizes that a change in government in Quebec could impact the proposed energy supply agreement with Newfoundland and Labrador, which aims to increase rates for electricity from the Churchill Falls plant.
Initially announced in December 2024, the agreement was set to be completed by April 2026. However, the new Conservative government in Newfoundland and Labrador seeks a review of the deal by a committee, causing potential delays.
Fréchette stresses the importance of reaching a timely consensus for Newfoundland and Labrador, cautioning that a shift in Quebec’s government could affect the outcome of the deal.
The Liberals in Newfoundland and Labrador anticipate significant economic benefits from the finalized agreement, estimating over $225 billion in revenue for the province over the next five decades.
