Federal Carbon Tax set to increase Jan. 1

December 13, 2019

Effective January 1, 2020, the Federal Carbon Tax that is applied to SaskPower’s fossil fuel emissions will increase from $20 to $30 per tonne. In addition, federal emission thresholds for coal-fired generation have been reduced by almost 20 per cent. The Carbon Tax rate rider applied to all SaskPower customer bills will be increased accordingly.

“While SaskPower has not increased rates in 2019, the Federal Carbon Tax means all SaskPower customers will pay more each month,” said the Honourable Dustin Duncan, Minister Responsible for SaskPower. “Saskatchewan’s Prairie Resilience climate change strategy establishes concrete steps toward meaningful greenhouse gas emissions reductions without the need for this harmful tax.”

SaskPower estimates that the year-over-year cost increase for residential customers will be equal to 1.5 per cent, or $22 per year. Farm customers can expect to pay an additional $60 in 2020. The specific amount charged per customer will vary depending on consumption. The federal government has scheduled continued annual increases until the carbon tax hits $50/tonne in January 2022. Based on SaskPower’s most recent estimates, the company will have to collect $122 million in 2020, up from an initial $62 million in 2019.

The Federal Carbon Tax came into effect January 1, 2019 and began appearing on SaskPower bills as of April 1, 2019. The Government of Saskatchewan is continuing to challenge the Federal Carbon Tax in court, however, SaskPower must still collect the tax throughout the legal process. If the Government of Saskatchewan is successful in the court challenge, the tax will be returned to customers.

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

At a glance...

  • Federal carbon tax on SaskPower greenhouse gas emissions will increase from $20 to $30/tonne in 2020
  • Residential customers will see an estimated $22/year increase to power bills
  • More information can be found at saskpower.com/federalcarbontax

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