Third year of federal carbon charge takes effect April 1
As part of the federal government’s multi-year carbon pollution pricing system, the carbon charge applied to fossil fuels will increase on April 1, 2021 from $30 per tonne of greenhouse gas emissions to $40 per tonne.
What you will be charged
The federal carbon charge puts a price of $40 on each tonne of greenhouse gas created by burning fossil fuels. Since natural gas produces greenhouse gases, the federal government has set a carbon charge equal to 7.83 cents that is applied to each cubic metre of natural gas that we sell.
How it affects you
The federal carbon charge increase in 2021 will add about $44 a year to the natural gas costs of a typical household. If you’re a larger volume gas customer, your natural gas costs will increase by up to 18% annually, depending on your customer class and consumption levels.
The federal government plans to increase the carbon charge by $10 per tonne a year until it reaches $50 per tonne in 2022. This is equal to an increase from 3.91 cents per cubic metre in the first year to 9.79 cents per cubic metre by the fourth year.
Where to find it on your bill
The federal carbon charge can be found on your energy bill in the natural gas section. GST is applied to the carbon charge. PST and City of Winnipeg taxes are not applied.
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Calculate your carbon charge
A typical household will use about 2250 cubic metres of natural gas in a year. Enter your own total consumption of natural gas into our calculator to estimate your total carbon charge.
Heating with natural gas still makes sense
Heating with natural gas is still expected to be more cost-effective than heating with electricity, even after the federal carbon charge increases to $50 per tonne in 2022.
The carbon charge and your electricity costs
The federal carbon charge applies only to consumption of fossil fuels. While almost all of the electricity produced in Manitoba is virtually emission free, we do buy fossil fuels for our operations. This includes diesel fuel for our fleet vehicles, and natural gas for building heat or the infrequent use of the natural gas-fuelled Selkirk and Brandon generating stations.
In a typical year, higher prices for these fuels coming from the carbon charge will result in a very small addition to our overall electricity costs. As with all costs, they will be recovered from our electricity customers through rates set by the Public Utilities Board.
More information about the carbon charge
Exemptions: customers with an exemption certificate issued by the federal government are required to complete the Federal Carbon Charge Account Exemption Declaration and submit it via email to firstname.lastname@example.org.