Federal Carbon Charge

Natural gas is dependable and affordable energy that enhances people’s quality of life and helps local business and industry prosper and grow. It continues to be the lowest-cost energy source and remains the most economical choice for home and water heating in Ontario.

What is the federal carbon charge?

In 2019, the federal government implemented a carbon pricing program in Ontario. As part of this program, a carbon charge applies to fossil fuels sold in Ontario, including natural gas. On April 1, 2020, the federal carbon charge for natural gas increased to 5.87 cents per cubic metre (m3). This charge will increase annually each April. In April 2021, the charge will increase to 7.83 cents per cubic metre. You can see how the price changes each year in the chart below. 

2019 – 2022 Federal Carbon Charge Rates for Marketable Natural Gas

Year

$/ tCO2e

cents/m3

2019

$20

3.91

2020

$30

5.87

2021

$40

7.83

2022

$50

9.79

 

There is also a facility carbon charge included in the delivery or transportation charge on your bill, which for the average residential customer will add about 12 cents annually. This charge is associated with the costs to operate Enbridge Gas’s facilities.

All of the money that we collect for the federal carbon charge goes to the federal government.

What does this mean for you?

The federal carbon charge has been included on customers’ bills since August 2019 and shows as a separate line item. It's forecasted that for the average Ontario household, the federal carbon charge will add about $141 to your annual natural gas bill in its second year. This will continue to change annually as the rate increases. Your total cost depends on how much natural gas you use, but can be determined by multiplying the federal carbon charge rate by the number of cubic metres of gas you used (which can be found on your natural gas bill).

The federal carbon charge went into effect in Ontario on April 1, 2019 and Enbridge Gas incurred these costs on customers’ behalf until we received approval from the Ontario Energy Board to include the federal carbon charge on our bill beginning August 2019. We have tracked these incurred costs in approved deferral and variance accounts and are seeking to recover them from customers at a later date, subject to OEB approval.

The federal government has indicated Ontario residents are eligible to receive a tax-free climate action incentive payment of up to $448 for an average Ontario family of four. The incentive can be claimed when you file your income tax return.

Large business customers who may be required or eligible to register with the federal government in order to receive full or partial exemption from the federal carbon charge can find more information on our large business customer federal carbon pricing program page.

Enbridge Gas has programs available to help you manage your energy costs

Homes and businesses can manage their natural gas use and reduce their energy bills by taking advantage of our energy-efficiency programs and tips.

For your home: enbridgegas.com/save

For your business: enbridgesmartsavings.com/business

Learn more about the federal carbon pollution pricing program from the Government of Canada.