Authority for electricity regulation: Who oversees power systems in Canada?

Ever wondered who decides how electricity is delivered and priced? In Canada, the authority for electricity regulation shapes the rules that keep homes and businesses powered.

This article explains who is responsible for electricity regulation in Canada and outlines key details about these authorities. For more information, consult an energy lawyer.

Who is the authority for electricity regulation in Canada?

There is no single national authority for electricity regulation in Canada. Instead, several bodies operate across the federal, provincial, and territorial levels, overseeing aspects, such as generation and distribution.

Here's how electricity regulations work in these government levels:

• provinces and territories: each province and territory has jurisdiction over the following:
  • policies for energy regulation, including electricity
  • generation, transmission, and distribution of electricity
  • management and implementation of electricity systems
  • regulation of entities involved in the supply and distribution of electricity
• federal government: the following matters fall under federal jurisdiction:
  • interprovincial power lines
  • nuclear power
  • exportation of electricity

Some aspects of electricity regulation, including environmental regulations, fall under shared jurisdiction.

In summary, the authority for electricity regulation in Canada is shared. Provinces handle most responsibilities, while the federal government is involved in interprovincial electricity and matters of national interest. This aims to protect the public and the environment.

Below, we'll highlight each authority for electricity regulation at the federal and provincial levels:

Canada Energy Regulator (CER)

The Canadian Energy Regulator (CER) is the main federal agency and works with provincial regulators to oversee energy projects, including electricity transmission.

Generally, the CER regulates:

• pipelines (oil, gas)
• powerlines (electricity transmission)
• energy development and trade
• offshore renewable energy projects
• onshore hydrogen pipelines
• import and export of energy resources

The CER regulates these facilities if they cross national, provincial, or territorial borders. Its authority covers the full life cycle of an energy project, from application and construction to abandonment and reclamation.

Here's a video that shows how the CER acts as an authority for electricity regulation:

Reach out to the Lexpert-ranked best energy lawyers for electricity in Canada for more information about how the CER regulates electricity in the country.

The CER Act

The CER is established by the Canadian Energy Regulator Act (CER Act) in 2019. This law repealed the National Energy Board Act and replaced the National Energy Board with the CER.

The CER Act lays down the powers, responsibilities, and composition of the CER. It also provides for:

• the specific energy projects that the CER can regulate
• the obligations and liabilities of energy companies

Key officials in the CER

The CER Act also lists the officials of the CER and their roles:

• Board of Directors: composed of not more than nine members who provide guidance to the CER in relation to governance, strategic advice, and direction, but cannot be involved in the decision-making process of the Commissioners
• Chief Executive Officer (CEO): responsible for the CER's day-to-day business, routine operations, and employees; the CEO reports to the Board, and like the Board, cannot give direction regarding any decision of the Commissioners
• Commissioners: there are seven appointed full-time commissioners, who can inquire, conduct hearings, and decide matters under the CER Act (e.g., when a company violates the law or its licence or permit)

Provincial authorities for electricity regulation

In addition to federal authorities, each province and territory has its own regulatory bodies established by statute. A province or territory may have several authorities involved in different aspects of electricity regulation.

The structure of electricity regulation varies by province or territory:

• fully regulated (e.g., British Columbia): the government fully controls the generation, transmission, distribution, and rates
• partially deregulated (e.g., Ontario): electricity regulation is shared between the government and private entities
• fully deregulated (e.g., Alberta): private entities control the generation, transmission, distribution, and rates

Utility boards or commissions

Each province and territory has its own utility board or commission. They ensure that electricity and other utilities are available and reliable, and work to keep rates reasonable for consumers.

For instance, Alberta has the Alberta Utilities Commission (AUC), a quasi-judicial agency that has the following responsibilities when it comes to electricity regulation:

• reviews and approves applications for new power generation
• regulates the building, operation, and decommissioning of electric facilities
• ensures the safe and reliable services of utilities, including electricity
• responsible for the just and reasonable rates of utilities
• handles inquiries and complaints from the public

Other provinces have the equivalent of the AUC, such as the Ontario Energy Board (OEB) and the British Columbia Utilities Commission (BCUC).

To highlight one of the provincial authorities for electricity regulation, watch this video about the BCUC and how it regulates electricity in the province:

Check out our directory of the Leading Lawyers in Energy found in our Special Edition for Energy Law if you need legal advice regarding your province's electricity regulator.

Electricity system operators

The provinces and territories manage their electricity systems through their own operators. Some systems in other provinces are operated by their utilities, while others are operated by independent bodies. These bodies manage and operate the power grid and facilitate transmission system access, which connects these systems to the public.

In Ontario, the electric system is operated by the Independent Electric System Operator (IESO). Aside from managing Ontario's power system, the IESO balances the supply and demand of electricity in the province, oversees the province's electricity markets, and forecasts its electricity needs.

Other examples of provincial electric system operators are the:

• Alberta Electric System Operator (AESO)
• British Columbia Hydro and Power Authority (BC Hydro)

Read next: Hydro permits: Key rules for electrical and water projects

Market surveillance bodies

In provinces with deregulated electricity markets, the government oversees market activity and may investigate or penalize violations, including breaches of competition laws.

Alberta's Market Surveillance Administrator (MSA) is an example of these agencies. Some of its responsibilities include:

• conducting surveillance to ensure that competition in electricity markets is fair
• imposes penalties or requests hearings from the AUC in case of violations

Other provinces have similar agencies, such as the OEB's Market Surveillance Panel (MSP) in Ontario.

Advisory bodies on sustainable energy

Electricity regulation in Canada is also influenced by the country's net-zero emission goals. Several advisory bodies have been created to support these objectives.

Canada Electricity Advisory Council (CEAC)

One of these bodies is the Canada Electricity Advisory Council (CEAC), which was launched by the federal government in 2023. CEAC's role is to advise the government after a period of one year on how to accelerate investments that would create sustainable, affordable, and reliable electricity systems.

Although the CEAC has already submitted its final report in 2024, the report will continue to shape how authorities approach electricity regulation in the coming years.

Net-Zero Advisory Body (NZAB)

The Net-Zero Advisory Body (NZAB) was established in 2021 and released its final report in 2023, outlining methods Canada can use to help achieve its climate targets. Specific to electricity regulation, it has also made recommendations regarding the planned net-zero energy systems.

How can lawyers help clients deal with authorities for electricity regulation?

Businesses and communities usually engage an energy lawyer for electricity for the following legal matters:

• what laws apply: since each province and territory has its own authority for electricity regulation, it is important to hire a lawyer familiar with the applicable law
• how to communicate with regulators: lawyers can help clients navigate regulatory processes and ensure all requirements are met
• representation: if a client faces a regulatory issue, a lawyer can represent them in hearings and prepare necessary legal documents

Authority for electricity regulation: Knowing who holds the switch

Understanding the authority for electricity regulation helps companies identify which bodies set the rules for the electricity sector. From provincial boards to federal agencies, each group plays a role in keeping the grid safe, reliable, and affordable.

When questions or disputes arise, energy lawyers can guide clients through the tangle of rules and regulators. With the right advice, businesses can understand their rights and obligations under Canada's energy laws.

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