Canada: Federal carbon charge increasing April 1

Effective April 1, 2020, the federal carbon charge for natural gas in Canada will increase from 3.91 ¢/m³ to 5.87 ¢/m³. The federal carbon charge rates are established in the federal Greenhouse Gas Pollution Act and are set to increase every year until 2022. You can see the projected increases in the chart below.

Enbridge Gas also charges a smaller facility carbon charge to recoup the cost of their facility-related emissions. This charge is included in the delivery or transport charge on your bill and will also increase on April 1st. The money collected from both the federal carbon charge and the facility carbon charge goes to the federal government.

The Ontario Energy Board (OEB) approved Enbridge Gas’s proposed rate increases to the federal carbon charge and facility carbon charge on an interim basis. Final rates will be approved once the OEB has fully reviewed the application, but this rate is unlikely to change. The chart below contains a summary of the expected rate increases.

If you are a greenhouse operator and submitted your exemption certificate last year, the 80 percent partial relief from the carbon charge will continue to apply to your bill and you do not need to resend your certificate. However, if your account number changes you must resubmit a form to receive the 80% reduction. Currently, this exemption is only for greenhouse operators.

Carbon pricing related deferral charges
The OEB has not approved Enbridge Gas’s request to recover its 2019 deferral and variance account balances. For all federal carbon pricing related deferral and variance accounts, Enbridge Gas is required to update their balances with the actual (not forecasted) costs related to carbon pricing up to December 31, 2019 and file the updated balances as soon as possible for OEB approval. We will update you when Enbridge Gas’ recuperation plan is approved and the costs are finalized.

For more information:
Ag Energy Co-operative
519-763-3026

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