carbon tax on power bill

Effective January 1, 2024, the Federal Carbon Tax rate rider will see a system-wide average increase of 0.5%. View the news release.

On January 1, 2019, the Federal Carbon Tax began being applied to our emissions from power-generating sources like coal and natural gas.

The Federal Carbon Tax increases annually. In 2019 it was set at $20/tonne of CO2 emissions above established thresholds. It then rose $10/tonne per year, reaching $50/tonne on January 1, 2022. From 2023 to 2030, the carbon tax will increase by $15/tonne per year.

View more information on federal carbon pricing.

Federal Carbon Charges and Your Power Bill

The Federal Carbon Tax appears as a separate charge on your power bill. The tax applies to how much power you use, and not to fixed amounts like the basic monthly charge.

On an annual basis, the amount charged is revised to reflect the yearly per tonne increase of the carbon tax and the decreasing emissions thresholds applied to coal power generation.

Learn more about how this charge will appear on your bill.

Saskatchewan Electric Heat Relief

From Jan. 1 to Apr. 30, 2024, customers who rely on electric power as their primary source of home heating will receive a 60% reduction on their federal carbon tax charge.

While we’ve already identified most of the customers who qualify for this relief, there may be some who haven’t previously told us they have electric heat and therefore haven’t been identified in our system. If this is you, please contact us through the message centre in your MySaskPower account. To do this:

  • Log in to your MySaskPower account
  • From your account drop-down menu, select “Message Centre” or just click this Message Centre webpage link
  • Click the “Send us a message” button
  • In the subject drop-down menu, please select “Saskatchewan Electric Heat Relief”
  • In the message body, please enter your full name, applicable service address and SaskPower account number
  • Click the “Send” button

You can expect to receive a response confirming your submission within 1 to 3 business days.

Those who have already been identified will automatically receive the relief and no action is required on their behalf.

Check out some common questions and answers below:

Why is the relief set at a 60% reduction?

Heating accounts for up to 60% of power consumed during the winter months for those who use electric heating as their primary source for their homes.

How will the relief appear on my bill?

You will see “Sask Electric Heat Relief” as a line item under the “Other Charges” section on your bill.

How do I know if I qualify?

Qualified customers are those who primarily heat their home using an electric source, such as baseboard heating.

The majority of Saskatchewan residents (about 85%) use natural gas heating for their home and will not qualify.

Since natural gas heating is not available in much of northern Saskatchewan, many customers in northern communities will qualify for the relief if their primary source of home heating is electric.

If you're still unsure, please log in to your MySaskPower account and submit a message or contact us.

What if I miss submitting my information prior to Jan. 1, 2024?

Qualified customers can still contact us through their MySaskPower account providing us with their name, service location and account number. They will receive corrected invoices retroactive to January 1, 2024.

Frequently Asked Questions

How much will this cost?

For residential customers, the 2023 Federal Carbon Tax cost increase will average 1.9% ($31 per year), effective January 1, 2023. The actual amount charged will vary depending on your power use.

Where does this money go?

We don’t keep any of the carbon tax collected.

On November 22, 2022, the federal government approved Saskatchewan's proposal for an updated Output-Based Performance Standards (OBPS) program, which now includes electricity generation. As a result, the 2023-2030 carbon tax revenue we collect is paid to the provincial government.

The provincial government is developing the mechanism to reinvest these funds back into Saskatchewan.

Why can’t SaskPower just pay this tax and not pass it on to customers?

Our 2022 emissions payment is estimated at $180 million. The cost will continue to grow as the annual cost per tonne increases and emissions thresholds decrease. That would mean less to invest in our province’s power system to ensure reliable and sustainable power for our customers.

We're committed to reducing greenhouse gas emissions by at least 50% from 2005 levels by 2030. We’ll get there in several ways, including increasing the renewable generation capacity in our system. However, the transition of our power system to lower-emitting generation sources will take some time.

Learn more:

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