Federal Carbon Tax

Carbon charges and your SaskEnergy bill

As part of the federal government’s carbon pricing system, a Federal Carbon Tax applies to all fossil fuels, including natural gas, and is calculated based on the amount you use.

Residential Carbon Tax Exemption

As of January 1, 2024, SaskEnergy will no longer collect the Federal Carbon Tax on natural gas consumption from residential customers. SaskEnergy will continue to collect the Federal Carbon Tax on natural gas consumption from commercial customers. Have questions? Here are some answers:

How do I know if I am a residential customer and therefore exempt?

All customers within SaskEnergy’s residential customer class will see a Federal Carbon Tax reversal on their bill. The residential customer class is made up of single-unit residences that are individually metered, such as a house, a single condominium unit or a single duplex.  

How do I know if I will continue paying the Federal Carbon Tax?

SaskEnergy will continue collecting the Federal Carbon Tax from customers whose buildings are used for commercial purposes. 

I am a residential customer, why does my bill still show an amount owing for the Federal Carbon Tax?

Any natural gas consumed up to December 31, 2023, will include the Federal Carbon Tax and the amount owing will be reflected on your bill. The carbon charge will not be applied to natural gas consumed starting on January 1, 2024. 
 

Will the Federal Carbon Tax still be reflected on my bill? 

The SaskEnergy bill statement will include a section showing the Carbon Tax rate along with a reversal of that charge. 

How will this change impact my equalized or pre-authorized payment plan? 

SaskEnergy will be changing equalized payment plan amounts starting February 2024 for residential customers. For customers enrolled in the pre-authorized payment plan, the carbon charge reversal will be applied to their monthly bills. 

Amount charged

  • The carbon charge on natural gas is a flat amount set by the Government of Canada and is part of a multi-year plan. Each year, the charge will adjust as follows:
    • April 2019 → $20 per tonne ($0.0391 per cubic metre)
    • April 2020 → $30 per tonne ($0.0587 per cubic metre)
    • April 2021 → $40 per tonne ($0.0783 per cubic metre)
    • April 2022 → $50 per tonne ($0.0979 per cubic metre)
    • April 2023 → $65 per tonne ($0.1239 per cubic metre)
    • April 2024 → $80 per tonne ($0.1525 per cubic metre)
    • April 2025 → $95 per tonne ($0.1811 per cubic metre)
    • April 2026 → $110 per tonne ($0.2097 per cubic metre)
    • April 2027 → $125 per tonne ($0.2383 per cubic metre)
    • April 2028 → $140 per tonne ($0.2669 per cubic metre)
    • April 2029 → $155 per tonne ($0.2954 per cubic metre)
    • April 2030 → $170 per tonne ($0.3240 per cubic metre)
  • GST applies to the tax amount. PST is not applicable.
  • Commercial customers can expect an annual increase of 10%.
  • Try our bill estimator to find out how the carbon charge will impact your bill.

Natural gas and the environment

  • For the coldest of prairie winters, natural gas is the safest and most reliable way to heat your home or business.
  • Natural gas is a fossil fuel that creates greenhouse gas emissions. It is a cleaner form of energy than other fuel options such as coal, oil, propane or electricity. In Saskatchewan, electricity is generated using a variety of sources, including coal and natural gas.

Ways to save

  • Finding ways to lower the amount of natural gas you use is one way to save money and help reduce your environmental footprint.
  • With the addition of the carbon charge, heating with natural gas appliances still costs less than electrical options.
  • SaskEnergy Network Members offer financing to upgrade your heating equipment to an ENERGY STAR® certified model.
  • Energy efficiency programs are available to assist qualifying businesses with buying and installing high-efficient natural gas equipment.

Exemptions

  • The federal government determines who may be exempt from paying a carbon charge. Contact the Canada Revenue Agency (CRA) to see if you are eligible, to register and/or to download the applicable Exemption Certificate.

Additional Resources and Links