Federal Carbon Charge
As part of the federal government’s carbon pricing program, a new carbon charge applies to fossil fuels sold in Ontario, including natural gas starting Apr. 1, 2019. The federal carbon charge for natural gas will be 3.91 cents per cubic meter (m3), increasing annually each April. All of the money that we collect for the federal carbon charge goes to the federal government.
How does this impact you?
It is forecasted that for the average Ontario household, the federal carbon charge will add about $94 to your annual natural gas bill.
Enbridge Gas Inc. applied to the Ontario Energy Board (OEB) for approval to add the federal carbon charge to customer bills beginning Apr. 1, 2019.
- On Feb. 28, 2019, the OEB announced that Enbridge Gas’ request to add the new federal carbon charge and facility-related charge to customer bills beginning Apr. 1, 2019 was not approved.
- Enbridge Gas’ application is still under review by the OEB. Prior to making a decision on any new charges, the OEB will consider comments of stakeholders and external parties.
- Customers will not see any charges related to the federal carbon pricing program on their bill until the OEB provides approval.
- Enbridge Gas is required to track the costs related to the federal carbon charge starting Apr. 1, 2019, and will seek to recover these costs from customers at a later date.
The federal government has indicated Ontario residents will receive a tax-free climate action incentive payment (estimated by the federal government to be about $300 for an average Ontario household) after filing their 2018 tax return.
We'll continue to keep you informed of changes related to the federal carbon charge and your bill here. Learn more about the federal carbon pricing program from the Government of Canada.
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.