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The energy and climate policies in Canada are interrelated.These energy and climate policies are implemented at both the federal and provincial government level.
In Canada's federal system of government, jurisdiction over energy is divided between the federal and provincial and territorial governments.The consuming provinces regulate distribution systems and oversee the retail price of natural gas to consumers.The key regulations with respect to the wholesale and retail electricity competition are at the provincial level.These principles are (1) competitive markets to ensure a successful and innovative energy system capable of meeting Canadian energy needs, (2) respecting the jurisdictions of provinces and the federal government and (3) targeted federal interventions in the energy trading process ensuring the specific energy-policy objectives are achieved.In order to improve the coherence of provinces and federal policies a combination of policy tools have been instituted to facilitate collaboration between the federal and provincial governments.In other provinces electricity is mostly generated and distributed by provincially owned utilities.
Canadian energy policy reflects the constitutional division of powers between the federal government and the provincial governments.
A recent SWOT (Strengths, Weaknesses, Opportunities, and Threats) analysis conducted in 2013 of a Canadian energy and climate policies has shows that there is a lack of consistency between federal and regional strategies.
The reason for this lack of consistency was attributed to the economic and environmental realities, the diversity of energy sources and energy demands that vary greatly among the Canadian provinces.
Provincial governments have jurisdiction over the exploration, development, conservation, and management of non-renewable resources, as well as the generation and production of electricity.
Federal jurisdiction in energy is primarily concerned with regulation of inter-provincial and international trade and commerce, and the management of non-renewable resources on federal lands.
The National Energy Board (NEB) is an independent federal regulatory agency that regulates the Canadian energy industry.