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SaskPower Says Carbon Tax Levy Won’t Rise On Heating In 2024
(CTN News) – According to SaskPower, Saskatchewan residents can anticipate an increase in their carbon tax bills starting from January 1st.
This comes shortly after Premier Scott Moe’s announcement that the province would no longer collect the tax on heating. The carbon tax on natural gas and electric heating bills was supposed to be eliminated to align with the federal exemption for heating oil.
However, SaskPower revealed in a recent media release that the federal carbon tax on carbon emissions will rise from $65 to $80 per tonne of CO2 emissions in the upcoming year.
To compensate for this increase, customer bills will see an average rise of 0.5 percent. SaskPower spokesperson Joel Cherry explained that this increase is because the carbon tax applies to all energy consumption, not just home heating.
Therefore, electricity used for lighting and appliances is still subject to the tax. Cherry emphasized that electric heating constitutes only a portion of the bill for approximately 30,000 customers.
Cherry stated that approximately 60 percent of a customer’s power bill can be attributed to heating costs for those who use electricity for heating. However, SaskPower will still be responsible for collecting and remitting the tax on the remaining 40 percent.
The carbon tax on the bill will still account for 40 percent and will be subject to the half percent rate rider. However, customers will not be paying the majority of the tax that would typically go towards electric heat.
In the new year, SaskPower is expected to adjust its rate rider annually.
To accurately determine the projected revenue from carbon tax for the upcoming year, we must conduct an estimation. Subsequently, we can make necessary adjustments to the rate rider.
This determines the amount of carbon tax that you will be required to pay on your bill.”
SaskPower has estimated that between 2019 and the end of 2024, customers will have paid $1 billion in federal carbon taxes.
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