In Short : Saskatchewan plans to offer relief to families from the federal carbon tax starting in the new year. This initiative likely aims to alleviate the financial burden on households, signaling the province’s approach to address carbon taxation concerns and support its residents.
In Detail : Both SaskEnergy and SaskPower will remove the federal carbon tax from home heating. 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.
“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, 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.