The federal government has implemented a new carbon tax for fossil fuels as part of the Greenhouse Gas Pollution Pricing Act (GGPPA) and its carbon pricing program. The tax came into effect for Ontario on April 1, 2019 and is designed to lower Canada's carbon emissions to meet the targets it agreed to at the Paris climate summit.
Cost recovery application
EPCOR has applied to the Ontario Energy Board (OEB) to raise its natural gas rates to recover costs associated with the GGPPA.
The federal carbon charge for natural gas will be 3.91 cents per cubic metre (m3), increasing annually each April. If EPCOR's application is approved a typical residential customer will see an increase on your bill of $5.80 per month (or $69.63 per year).
EPCOR's application is still under review by the OEB. At this time, you will not see any charges on your monthly bill related to the federal carbon pricing program until the OEB provides approval.
Carbon rebate for Ontario residents
As part of the
Climate Action Incentive payment, the federal government has indicated that most of the proceeds it collects through the carbon charge will be returned to Ontario residents as a rebate. As a household, you could receive approximately $300 a year after claiming the incentive on your annual tax return.