The Saskatchewan government says it will stop charging the federal carbon tax on home heating as of January 1, 2024.
Customers of SaskEnergy and SaskPower 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; however, 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.
Both companies are crown subsidiaries through the Saskatchewan Crown Investments Corporation (CIC).
Saskatchewan says this federal carbon tax removal will impact 98 per cent of Saskatchewan families “unfairly left out” of the federal government’s home heating tax exemption announced for the Atlantic provinces in late October.
“Our government is ensuring fairness for Saskatchewan families by removing the federal carbon tax on natural gas and electric heat, just as the federal government has done for families in Atlantic Canada by removing the carbon tax on heating oil,” Crown Investments Corporation Minister Dustin Duncan said. “By extending carbon tax relief to Saskatchewan families who were left out in the cold by the federal government, our government is protecting Saskatchewan families’ ability to afford to heat their homes this winter.”
The removal of the federal carbon tax from SaskEnergy bills will save households 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, the CIC says.
For SaskEnergy customers on an Equalized Payment Plan, equalized payment amounts will be adjusted beginning in February.
