As part of the Government of Canada’s carbon pollution pricing program1, a federal carbon charge applies to fossil fuel deliveries in Ontario, including natural gas, effective Apr. 1, 2019.
As a valued business partner, the following information is designed to both inform and provide valuable links to the information needed to understand the Federal Carbon Pricing Program (FCPP) related to your business with Enbridge Gas. For a more complete overview of this program, please visit the Government of Canada's Canada Revenue Agency (CRA) website.
What is the Federal Carbon Charge?
As part of the Government of Canada's carbon pollution pricing program, a federal carbon charge applies to fossil fuel deliveries in Ontario, including natural gas, effective Apr. 1, 2019. The federal
carbon charge is expected to increase annually each April. Money collected for the federal carbon charge by Enbridge Gas goes to the Government of Canada.
What does this mean for my business?
The FCPP imposes a federal carbon charge on deliveries of natural gas in Ontario, Manitoba, Alberta and Saskatchewan (each a "Listed Jurisdiction") as well as certain other jurisdictions. This impacts trading of natural gas in Ontario (including the Dawn Hub), as well as transactions in any other "Listed Jurisdiction".
The FCPP requires a party that physically delivers natural gas through a pipeline and/or meters the end use customer for billing purposes will be responsible for registering as a distributor with the Canada Revenue Agency (CRA). This applies to natural gas producers, and pipeline operators or owners. Natural gas delivered to an end use customer by a registered distributor will be subject to the fuel charge unless an exemption certificate has been provided. For more information about the fuel charge notice or visit the Canada Revenue Agency (CRA) website.
Doing business with Enbridge Gas
Customers who only contract for storage and transportation services (i.e. natural gas is purchased from a counterparty other than Enbridge Gas), do not need to provide an exemption certificate to Enbridge Gas. For these customers, the customer related carbon charge will not be invoiced by Enbridge Gas.
Effective Aug. 1, 2019, Enbridge Gas received Ontario Energy Board (OEB) approval to add a "facility related" carbon charge. The facility related carbon charge is applicable to Enbridge Gas' own operation of its distribution and transportation system. All customers that use Enbridge Gas transportation and/or distribution services will be charged a facility-related carbon charge.
The following rate zones are subject to a facility-related carbon charge effective April 1, 2021:
|Facility Carbon Charge Rates Applicable in each Rate Zone|
|Union Gas Rate Zones||Facility-related carbon charge|
|Enbridge Gas Distribution Rate Zones||Facility-related carbon charge|
Enbridge Gas has registered with the CRA, and its Exemption Certificate is available to all contracting parties so that sales to Enbridge Gas will be exempt from the federal carbon charge. This applies to deliveries to both "Enbridge Gas Operating as Union Gas" and "Enbridge Gas Operating as Enbridge Gas Distribution".
Enbridge Gas' Exemption Certificate can be found by clicking on the following link:
Generally, if Enbridge Gas is delivering natural gas to a counterparty at a delivery point in a "Listed Jurisdiction", Enbridge Gas is required to collect the amount of federal carbon charge.
If you receive delivery of natural gas and are invoiced for consumption by Enbridge Gas, your Exemption Certificate is required in order to be exempt from the customer related carbon charge.
Once you have completed the CRA registration process, please forward the CRA-issued registration confirmation letter and CRA-issued Exemption Certificate to email@example.com.
To register as a distributor, the Canada Revenue Agency has issued the following steps:
- Review Fuel Charge Notice FCN2 – information on registration, filing and reporting requirements
- Producers, distributors or wholesalers that are required or permitted to register as distributors should carefully review the information contained in this notice since a clear understanding of the legislative provisions is key to remaining compliant with the Greenhouse Gas Pollution Pricing Act.
- Complete both Form L400, Fuel Charge Registration and Form L400-1, Fuel Charge Registration Schedule
- Information on other registration types can be found in Fuel Charge Notice FCN1, Registration Under the Greenhouse Gas Pollution Pricing Act.
- Registration forms can be submitted electronically using the CRA "Submit documents" function in the CRA My Business Account. If the person submits a registration application electronically, that person will be provided with a confirmation number. This confirmation number should be retained for follow-up on the status of the application.
The person can also send the completed registration forms by mail to the following address:
Sudbury Tax Centre
Fuel Charge Program
Post Office Box 20000, Station A
Sudbury ON, P3A 5C1
If the application for registration is approved, the CRA will inform the person in writing of its registration number and the effective date of registration.
The following resources can assist in determining registration requirements.
- Fuel Charge Technical Information
- Fuel Charge Registration
- FCN1 Registration Under the Greenhouse Gas Pollution Pricing Act
- List of regional CRA contacts
- Technical Questions on Part 1 of the Greenhouse Gas Pollution Pricing Act (Ontario): 1-866-667-9851
- CRA Registration Information: 1-866-959-7797
Filing and Reporting
The reporting period of a registered distributor is a calendar month (see Section 68 of the Greenhouse Gas Pollution Pricing Act). A registered distributor must file a return monthly with the CRA, even if there is no amount owing. The return must be filed by the end of the month following the reporting period.
A registered distributor will be required to submit the following forms monthly to CRA):
- Form B400, Fuel Charge Return – Registrant
- Form B400-1, Fuel Charge Return Schedule – Registered Distributor.
A registered distributor must determine the net charge (see the "Calculating the net charge" section of the link) for each listed province for the reporting period for which the return and accompanying return schedule(s) must be filed.
If you have questions regarding the FCPP or how it impacts your business with Enbridge Gas, please contact your account manager.
1 Pursuant to the Greenhouse Gas Pollution Pricing Act, S.C. 2018, c. 12, s. 186
2 The GGPPA defines "delivery" of natural gas to include making the natural gas available.