Canada Energy Regulator – 2023–24 Departmental Results Report – Vision, Mission, Raison d’être and Operating Context

The CER’s vision, mission, mandate and role are detailed at Governance of the Canada Energy Regulator – Mandate, Roles and Responsibilities on the CER website.

Raison d’êtreFootnote 1 : The CER regulates interprovincial and international pipelines and powerlines, offshore renewable energy projects, oil and natural gas operations in frontier areas, and energy trade. The CER’s mission is regulating infrastructure to ensure safe and efficient delivery of energy to Canada and the world, protecting the environment, recognizing and respecting the rights of the Indigenous Peoples of Canada, and providing timely and relevant energy information and analysis.

Operating Context

Managing risks and seizing opportunities in the work the CER does on behalf of all Canadians affects how the CER achieves planned results. The CER has an Enterprise Risk Management (ERM) Framework for managing risks in the context of the current governance model and Strategic Plan. ERM is a holistic approach to identifying, assessing, preparing for, and managing organization-wide strategic risks. By providing a framework to identify enterprise-level risk events, ERM enables the CER’s Board of Directors and senior management to strategically manage events that might stand in the way of organizational success and identify mitigations to these risks.

In 2023-24, the CER mitigated risks related to:

Industry Safety

The CER works for Canadians to keep energy moving safely and efficiently through our country’s pipelines and power lines. The organization carries out this function by setting and enforcing regulatory expectations for companies over the full lifecycle – construction, operation, and abandonment – of energy-related activities.

There is a risk that the CER is ineffective in preventingFootnote 2 a high-consequence event resulting in significant harm to people, property, Sites of Indigenous Significance and/or the environment. To mitigate this risk, the CER:

  • Completed Compliance Verification Activities (CVA) that are risk-informed and data-driven.
  • Completed Management System Audits - systems to improve outcomes.
  • Completed Financial Compliance and Audits.
  • Continually monitored and improved the quality of data that informs risk and CVAs.
  • Promoted Safety Culture in regulated companies.
  • Maintained technical strength through professional accreditation and training.
  • Maintained a strong role in setting technical standards (Canadian Standards Association - CSA).
  • Maintained emergency response processes and skills.
  • Worked in partnership with the Indigenous Advisory and Monitoring Committees (IAMC) on major construction oversight and developing improvements to our regulatory processes and practices.

Cybersecurity Breach to CER Systems

The CER is ever vigilant in working to prevent a cybersecurity breach to CER systems. There is a risk that a breach could lead to unauthorized disclosure, alteration or destruction of protected CER data; unauthorized alteration or destruction of IT systems or digital services; or disruption of CER systems resulting in an inability to carry out daily operations. To mitigate this risk, the CER:

  • Exercised a risk-managed approach to cybersecurity.
  • Maintained compliance with policy and directives related to cybersecurity as set by Lead Security Agencies (LSA) and implemented guidance based on risk management decisions.
  • Partnered with LSA, other Government of Canada entities, and private sector vendors and consultants.
  • Maintained rapid response plan, processes, and skills.

Indigenous Rights/Crown Consultation

The CER remains committed to Reconciliation with Indigenous Peoples, and we make deliberate efforts in this direction. The tools embedded in the CER Act and a renewal of the CER’s relationship with Indigenous Peoples support organizational efforts in advancing Reconciliation – based upon the recognition of rights, respect, cooperation, and partnership.

Crown consultation is just one part of the CER’s relationship with Indigenous Peoples. Where the CER has Crown consultation responsibilities, consultation occurs with Indigenous Peoples early and throughout the review process. The CER tailors the scope and nature of Crown consultation activities to the proposed project's complexity, potential effects, and the needs of affected Indigenous Peoples.

There is a risk that the CER does not adequately respect and respond to Indigenous rights or meaningfully carry out Crown consultation with Indigenous Peoples. This could lead to inadequately addressing, avoiding, or minimizing any adverse impacts on Indigenous Peoples’ rights.

To mitigate this risk, CER:

  • Conducted structured review and learn opportunities to enable improvements and adjustments promptly.
  • Developed clear communication products and messaging for Indigenous Peoples, proponents, stakeholders, and the Commission.
  • Increased involvement and partnership with other federal departments and agencies to raise awareness of CER’s Crown consultation role, setting clear expectations of supporting the CER in this role, informing federal policy/program initiatives, and learning best practices.
  • Created partnerships and cooperation between CER and other federal authorities to ensure the CER was aware of new and evolving policy contexts and could incorporate these into the Crown consultation approach.
  • Incorporated strategic input from the Indigenous Advisory Committee (IAC) via the CER Board of Directors.
  • Collaborated internally amongst the Business Units responsible for and involved in Crown consultation and Reconciliation.
  • Engaged with Indigenous Peoples to leverage organizational initiatives to respond to their concerns.
  • Worked in partnership with Indigenous communities through mechanisms such as the Indigenous Advisory Monitoring Committees (IAMCs) and the Aboriginal Liaison Program in British Columbia to develop meaningful relationships and identify ways to address issues related to Indigenous Peoples’ rights.

Sustainability of Funding

There is a risk that uncertain funding levels could result in insufficient resources to deliver current and future work, leading to an inability to carry out regulatory work, balance and execute on Strategic Priorities versus core work, and experience a reputational loss.

In previous years, the CER sought and received additional funding for transitioning to new impact assessment and regulatory processes, Indigenous Advisory and Monitoring Committees, and making data available digitally to Canadians. These initiatives supported the CER in implementing sustained change stemming from CER Act implementation. This funding was allocated on a temporary basis, while all these requirements exist as part of a modern, well-functioning regulatory organization. In future years, the CER would benefit from the renewal and rollover of temporary funding for these efforts into ongoing and stable funding.

To mitigate this risk, the CER:

  • Continued to align activities between our Core Responsibilities and Strategic Priorities.
  • Continued strong governance and oversight in financial management forecasting and reporting.
  • Made funding renewal requests through the Estimates process as needed.

Workforce

Achieving the CER’s planned results is only possible with a team of dedicated professionals who are committed to serving the public. People are the CER’s most critical asset, but the risk exists that the organization cannot adequately attract, retain, and develop a diverse, inclusive, and modernizedFootnote 3 workforce. This could lead to voluntary attrition, decreased productivity, not fulfilling the CER’s mandate and erosion of CER culture.

To mitigate this risk, the CER:

  • Developed and implemented an internal communications and engagement strategy to support and drive positive change.
  • Made continuous improvements to Human Resources policies, practices, and processes.
  • Implemented the Diversity & Belonging Roadmap informed by Gender-Based Plus analysis and guided by the triennial Employment Equity, Diversity, and Inclusion Plan.
  • Monitored PSES results and respective action items.
  • Continued to enforce mandatory training for leaders and staff (e.g., inclusive hiring practices and workplace violence and harassment prevention).
  • Guided and implemented CER official language compliance requirements.
  • Reviewed and assessed the CER standard job description classification system.
  • Continued to collaborate effectively with the Union (PIPSC), including participation in collective bargaining.
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