Federal Carbon Tax Increase Set for New Year

December 17, 2020

Effective January 1, 2021, the Federal Carbon Tax that is applied to SaskPower’s carbon emissions will increase from $30 to $40 per tonne. As a result, SaskPower must increase the carbon tax amount collected on customer bills.

“Our government recently implemented the 10 per cent Saskatchewan Economic Recovery Rebate on power bills, and I’m pleased to announce SaskPower will not pursue a rate increase in 2021,” said Don Morgan, Minister Responsible for SaskPower. “However, SaskPower customers will soon see a higher number on one part of their bill because of the increased Federal Carbon Tax.”

The amount charged per customer will vary depending on consumption.

The Federal Carbon Tax came into effect January 1, 2019 and began appearing on SaskPower bills April 1, 2019. The federal government scheduled continued annual increases until the carbon tax hits $170/tonne by 2030.

The Government of Saskatchewan and SaskPower’s challenge of the Federal Carbon Tax was heard in September 2020 by the Supreme Court of Canada. A timeline for a decision is unknown and SaskPower is required to collect the carbon tax during this time.

More information about the Federal Carbon Tax and its effect on SaskPower bills can be found at SaskPower.com.

At a glance...

  • Federal carbon tax on SaskPower greenhouse gas emissions will increase from $30 to $40/tonne in 2021
  • The amount charged per customer will vary depending on consumption
  • More information can be found at saskpower.com
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