In October, the provincial government announced they were going to have SaskEnergy stop collecting the carbon tax on home heating in response to the federal government’s decision to suspend the collection of the tax on home heating oil, which primarily impacted Atlantic Canada. In a release issued Thursday morning, the province reaffirmed their position and also stated they would not be collecting a portion of the carbon tax on SaskPower bills as well.
"Our government is ensuring fairness for Saskatchewan families by removing the federal carbon tax on natural gas and electric heat, just as the federal government has done for families in Atlantic Canada by removing the carbon tax on heating oil," Crown Investments Corporation Minister Dustin Duncan said in the release. "By extending carbon tax relief to Saskatchewan families who were left out in the cold by the federal government, our government is protecting Saskatchewan families' ability to afford to heat their homes this winter."
SaskPower is using an estimate of 60 percent of power consumption going towards home heating to determine how much of the carbon tax will not be collected on the utility. This will mean the average customer will see a reduction of 60 percent of the carbon tax rate rider on their bill, which would work out to savings of approximately $21 a month in the winter.
The provincial government stated the average SaskEnergy customer will see annual savings of $400 with the move.
The release clarified the federal carbon tax charge will still be on SaskEnergy and SaskPower bills in January for any heating in December. For usage after January 1st, the federal carbon levy will be zero billed, appearing as a charge and a credit. SaskEnergy customers on equalized payment plans will see their equalized amounts adjusted starting at the beginning of February.