SaskPower Customers To See 3% Increase on Bills as Federal Carbon Tax Rises
December 09, 2022
Effective January 1, 2023, the Federal Carbon Tax applied to SaskPower’s carbon emissions will increase from $50 to $65 per tonne. To cover this increase mandated by the Government of Canada, the Carbon Tax rate rider on SaskPower bills will see a system-wide average increase of three per cent.
“SaskPower is steadily moving toward a low-carbon future while continuing to provide the reliable electricity our province needs to grow,” said Rupen Pandya, SaskPower President & CEO. “We are striving to achieve these goals while keeping rates as low as possible while complying with a federal regulatory framework that requires us to collect additional carbon tax revenue.”
The three per cent increase is an additional cost, separate from SaskPower’s previously announced rate increase of four per cent, which was effective Sept. 1, 2022. The specific amount charged per customer will vary depending on their power consumption.
The federal carbon tax was established in 2019 for emissions above established thresholds. It has since increased on an annual basis and will continue to do so until it reaches $170/tonne in 2030.
SaskPower must collect the carbon tax through customer bills via a rate rider that is revised January 1 of every year. The rate rider is based on an estimate of carbon taxes for the upcoming calendar year, and the difference between the amount collected and actual payment due is factored into the following year’s rate rider.
At a glance...
- Federal carbon tax on SaskPower greenhouse gas emissions will increase from $50 to $65/tonne in 2023
- The increase will result in an average increase of three per cent for SaskPower customers