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?

As part of the federal government’s carbon pricing program, a carbon charge applies to fossil fuels sold in Ontario, including natural gas. On April 1, 2021, the federal carbon charge for natural gas increased to 7.83 cents per cubic metre (m3). This charge increases annually each April. 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 16-28 cents annually, depending on your location. This charge is associated with the costs to operate Enbridge Gas' 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 $172-$188 to your annual natural gas bill between April 2021 and March 2022 (depending on your location). 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 government has indicated Ontario residents are eligible to receive a tax-free climate action incentive payment of up to $588 for an average Ontario family of four in 2021. 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: enbridgesmartsavings.com

For your business: uniongas.com/savemoneyandenergy

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

*The Federal Carbon Charge and 2019 balances in the customer variance accounts for on-reserve First Nations customers are interim, per the OEB’s decision and order in EB-2019-0247.