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|
*tonnes of carbon dioxide equivalent
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 that direct proceeds from the carbon pricing program will be returned to Ontario residents through a tax-free climate action incentive (CAI) payment. The federal government has proposed to change the delivery of CAI payments starting in 2022, from a refundable credit claimed annually on income tax returns to quarterly payments delivered at the beginning of each quarter. The CAI payment amounts for 2022 are anticipated from the Minister of Finance in early 2022.
Learn more about the federal carbon pollution pricing program from the Government of Canada.