The draft regulation establishes how section 76 of the Act respecting the Régie de l’énergie is to be applied when determining when a holder of exclusive electricity distribution rights must obtain authorization from the Minister of Economy, Innovation and Energy before supplying electric power to certain customers. It clarifies both the thresholds that trigger ministerial authorization and the circumstances in which such authorization is not required, with the stated aim of improving oversight of large-scale and potentially high-impact electricity allocations.

The regulation introduces cumulative consumption thresholds tied to specific users, sites, and types of activity. A distributor must seek authorization when the total electricity already authorized or committed to a customer over the previous four years, combined with a new request for the same site and use, reaches at least 50 kilowatts for cryptographic use applied to blockchain activities such as cryptocurrency mining. For all other uses of electricity, the threshold is set at 5 megawatts.

The regulation also defines what constitutes the “same use of electric power” and “same site.” Use is determined according to the North American Industry Classification System (NAICS) at the three-digit level, ensuring that activities within the same economic sector are treated consistently. A site is defined broadly as a network of adjacent installations, even if not located at identical addresses, thereby preventing fragmentation of large facilities into separate nominal locations to circumvent authorization requirements.

Beyond initial supply thresholds, the draft regulation imposes additional authorization requirements when existing users modify how electricity is used. For example, authorization is required when a customer shifts from cryptocurrency mining to data processing activities classified under NAICS code 518, or when a customer transitions from a non-cryptographic use into cryptocurrency mining at the same site. It also applies when a user already receiving 5 megawatts or more changes to a different sector of activity as defined by a different NAICS three-digit code.

The regulation further addresses situations involving multiple related requests. A distributor must seek authorization when a person or a group of affiliated or controlled entities submits multiple electricity requests for the same use and site that, when combined, meet or exceed the regulatory thresholds. Control is broadly defined to include corporate majority voting power, general partnership control, or trustee authority in the case of trusts. Entities sharing a common controller are considered affiliates, ensuring that corporate structures cannot be used to divide demand artificially among related entities to avoid regulatory scrutiny.

Quebec (Draft) May 15, 2026
Disclaimer: Insights are for informational purposes only and does not reflect RRI’s official position or constitute legal opinion.