Enserva’s Provincial Spotlight Series provides an overview of the latest policy updates, regulatory changes, and industry-specific developments in our members’ operating areas. In this edition, we revisit Ontario to explore topics pertinent to the energy services, supply, and manufacturing sector.
ICYMI: The previous issue, published on March 20th, highlighted Saskatchewan.
Political Insights
Following the Ontario general election on February 27, 2025, the Progressive Conservative Party, led by Premier Doug Ford, secured re-election with 80 seats, surpassing the 63 required for a majority. This marks the first time since 1959 that an Ontario party leader has achieved three consecutive majority governments.
The Ontario NDP, under Marit Stiles, secured 27 seats and remains the Official Opposition. The Ontario Liberals regained party status with 14 seats, marking their strongest showing since 2018.
On March 19, Premier Ford announced an expanded 36-member cabinet reflecting a deliberate move toward deeper specialization and regional representation as Ontario navigates new economic pressures.
Key Appointments
- Rob Flack takes over Municipal Affairs and Housing.
- Todd McCarthy becomes Minister of the Environment, with added oversight of conservation authorities.
- Stephen Lecce continues as Minister of Energy, now also responsible for Mines.
- Mike Harris moves into the role of Minister of Natural Resources.
- Greg Rickford retains Indigenous Affairs and adds responsibility for Ring of Fire partnerships.
- Paul Calandra becomes the Minister of Education, following several transitions in the file.
Provincial Priorities
- Workforce Development: Continued investment in training, upskilling, and reskilling to support better jobs and higher wages. As part of this effort, Ontario announced an increase in the minimum wage to $17.60 an hour effective October 1, 2025. This follows the recent passage of the Working for Workers Six Act, 2024, aimed at expanding access to the skilled trades, removing employment barriers, and supporting frontline and underrepresented workers.
- Critical Minerals and Infrastructure: Advancing development in the Ring of Fire, with a focus on all-season road access and downstream supply chain growth.
- Trade Diversification: Tearing down internal trade barriers to open new markets for Ontario products and services. Ontario is fast-tracking legislation to reduce interprovincial trade barriers—starting with mutual recognition of credentials, goods, and services. Modeled after Nova Scotia’s recent reforms, this move aims to improve labour mobility, lower business costs, and strengthen Canada’s internal market as a buffer against global trade uncertainty.
- Rural and Northern Connectivity: While oversight of broadband expansion was recently moved to the newly expanded Ministry of Energy and Mines, digital infrastructure remains a core priority for enabling regional development. The shift reflects the government’s broader strategy to align connectivity with energy and resource development—especially in Northern Ontario, where access supports both communities and critical mineral projects.
Electricity Export Surcharge in Response to U.S. Tariffs
- In response to escalating U.S. tariffs—particularly on the automotive sector—Ontario introduced a 25% surcharge on electricity exports to the United States on March 10th. However, the province temporarily suspended this measure just days later, following high-level talks with the U.S. Secretary of Commerce. Premier Ford emphasized the need to “let cooler heads prevail,” while keeping the surcharge as a potential future tool should negotiations break down.
The Bottom Line
Premier Ford’s cabinet signals focus on defending Ontario’s economy through energy strategy, skilled workforce development, and assertive trade policy. Ontario is home to most of Canada’s steel and aluminum producers therefore U.S. tariffs in these sectors are a direct hit to the province’s industrial base. The now-paused 25% electricity export surcharge, alongside broader retaliatory measures, highlight a volatile trade environment with the potential to reshape cross-border investment and cooperation. Ontario’s energy sector will remain central to the province’s response as it navigates rising tensions and economic uncertainty.
