REGINA — Starting Jan. 1, 2024, both SaskEnergy and SaskPower will remove the federal carbon tax from home heating.
The government of Saskatchewan says this will result in savings for approximately 98 per cent of Saskatchewan families who were “unfairly left out” of the federal government's decision to exempt the carbon tax on home heating oil.
The removal of the federal carbon tax from SaskEnergy bills, effective January 1, 2024, will save the average Saskatchewan family approximately $400 in 2024.
Heating accounts for up to 60 per cent of power consumption during the winter months for customers who rely on electric heat, so SaskPower will eliminate the carbon tax on that heating by reducing the federal carbon tax rate rider on their bills by 60 per cent. This will benefit approximately 30,000 SaskPower customers, reducing their power bills by an average of $21 per month through the winter.
Customers will still see a federal carbon tax charge on their January utility bills for natural gas or electricity used for heating that they used in the month of December. The federal carbon tax will be zero billed, appearing as both a charge and a reversal credit, on bills for usage on and after January 1, 2024.
For SaskEnergy customers on an Equalized Payment Plan, equalized payment amounts will be adjusted beginning in February.
Customers who believe that they are incorrectly being charged the federal carbon tax can contact SaskEnergy at 1-800-567-8899 or www.saskenergy.com/customer-support, and SaskPower at 1-888-757-6937 or contactus@saskpower.com.
Premier Scott Moe announced at the end of November that the province had decided to extend the carbon tax exemption to electricity used to heat homes, effective Jan. 1. Earlier in the month, the province had introduced legislation to remove the carbon tax charge on gas bills. This was in response to the federal government’s relief offered only to home heating oil.
Meanwhile, a bill that would exempt fuels used for heating livestock barns, greenhouses and drying grain from the carbon pricing regime has been amended to only apply to grain drying. The proposed exemption will now end after three years instead of eight.
The Senate made the changes on Dec. 5 and Dec. 11. The bill will now return to the House of Commons for MPs to accept or reject the amendments in the new year.
