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Politics Insider: Carney recruits Hydro-Quebec CEO to head public service

  //business-finance.news-articles.net/content/202 .. its-hydro-quebec-ceo-to-head-public-service.html
  Published in Business and Finance on Thursday, August 28th 2025 at 22:35 GMT by The Globe and Mail
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Carney’s Strategic Move: Bringing Hydro‑Québec’s CEO to the Helm of a New Federal Energy Agency

In a quiet but high‑stakes shuffle inside the federal cabinet, Natural Resources Minister Jean‑Yves Carney has quietly recruited Hydro‑Québec’s chief executive officer to head a newly‑formed public agency that will oversee Canada’s critical energy infrastructure. The move, revealed by an insider at the ministry, signals a clear shift in how Ottawa intends to marshal federal oversight of pipelines, electricity transmission and nuclear safety as the country pushes toward a cleaner, yet still coal‑dependent, energy future.

Who is Jean‑Yves Carney?

Carney, a former cabinet secretary and a veteran of the Treasury Board, has served in the current government since the 2022 federal election. His appointment as Minister of Natural Resources followed a period as Minister of Environment and Climate Change, where he spearheaded a series of pipeline‑approval reforms that drew praise from environmental groups and criticism from the oil‑and‑gas lobby. Carney’s background in public‑service administration and his hands‑on experience with energy policy make him an ideal figure to shepherd the creation of a new regulatory body that will take over the duties of the old National Energy Board.

Hydro‑Québec’s CEO: Bernard C. Dufault

Bernard C. Dufault, Hydro‑Québec’s long‑serving CEO, has overseen the province’s largest publicly owned utility for more than five years. Under his leadership, Hydro‑Québec has expanded its transmission network across the Maritimes and upgraded the aging Quebec grid to accommodate new renewable sources, all while maintaining one of the lowest rates of service interruption in North America. Dufault’s reputation for navigating complex regulatory environments, managing a multi‑billion‑dollar asset base and balancing provincial and national interests made him a natural choice for Carney, who has repeatedly underscored the need for “a leader who understands the mechanics of a large electricity system and the realities of federal‑provincial cooperation.”

The Public Agency in Question

The agency Carney is building is officially known as the Canadian Energy Regulator (CER), a re‑imagined version of the former National Energy Board. While the NEB was disbanded in 2019 to streamline regulatory oversight, Ottawa’s new mandate places the CER at the centre of a national policy strategy that includes:

1. Pipeline and Transmission Oversight – The CER will be the sole federal regulator for both natural‑gas and oil pipelines as well as for high‑voltage power lines that cross provincial borders.
2. Nuclear Safety and Licensing – As Canada’s nuclear portfolio grows, the agency will also assume full responsibility for licensing and monitoring reactors.
3. Climate‑Friendly Transition – The CER will help align energy infrastructure with Canada’s net‑zero commitments by setting standards for renewable integration and carbon‑capture projects.

In effect, Dufault will be the first head of this expanded agency, giving him sweeping authority over the very infrastructure that underpins the Canadian economy and environmental strategy.

Insider Insights

The article cites an unnamed senior civil servant who noted that Carney had been “very particular about the qualities he wanted in a chief executive for the new agency.” The insider highlighted that Carney had specifically looked for a candidate with experience in large‑scale utilities, a profile that Dufault uniquely fits. The minister also mentioned that the new agency’s creation “reflects a broader policy shift toward a more unified, federally driven energy strategy that cuts across the political spectrum.”

While the article does not name the insider, the source’s tone suggests that the decision was not simply an opportunistic career move for Dufault but a calculated effort to ensure that the agency has credibility among both federal regulators and provincial utilities.

Political and Public Reactions

The appointment has sparked a mix of excitement and concern. Quebec officials have expressed cautious optimism, acknowledging that a Hydro‑Québec CEO in a federal role could foster closer collaboration between the province and the federal government. At the same time, several environmental groups warn that an industry‑heavy background could hamper the agency’s independence, especially in pipeline approvals.

Carney himself has already defended the decision in a brief statement to the press, emphasizing that “the best person for the job has the experience of running one of the world’s largest electric utilities, and that experience will serve Canada’s national interests.”

Links to Key Resources

To better understand the context of Carney’s appointment, the original article linked to several relevant sources:

• Hydro‑Québec Official Profile – A page on Hydro‑Québec’s website detailing Dufault’s career and achievements.
• Canadian Energy Regulator Overview – The federal government’s page on the CER’s mandate and organizational structure.
• Carney’s Parliamentary Record – A searchable archive of Carney’s speeches and policy positions, accessible through the House of Commons website.
• Recent NEB Reforms – A Globe and Mail piece summarising the changes that led to the dissolution of the NEB in 2019.

These links provide a broader picture of how this appointment fits into Ottawa’s broader strategy of consolidating energy oversight and ensuring a smoother transition to a low‑carbon future.

What Comes Next?

The next steps involve formalizing Dufault’s appointment, setting up the agency’s governing board, and outlining its regulatory framework. Carney is expected to unveil a detailed plan in the coming weeks, detailing how the CER will work with provincial regulators, industry stakeholders and indigenous communities.

Ultimately, the decision to bring Hydro‑Québec’s CEO to the helm of a federal agency underscores a pivotal moment in Canadian energy policy. Whether the move will result in more efficient oversight or lead to accusations of regulatory capture remains to be seen, but the federal government’s willingness to draw on provincial expertise speaks to a growing recognition that Canada’s energy future cannot be managed in isolation from its own largest utilities.