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.
New monthly bill charge
Effective August 1, 2019, you will see a new line item on your monthly bill: Federal Carbon Charge. This charge recovers costs associated with the GGPPA and reflects your August consumption up to the bill date and then consumption for each month going forward.
The federal carbon charge for natural gas is 3.91 cents per cubic metre, increasing annually. This year, the bill of a typical residential customer will increase by $5.80 per month.
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.