2025 brings a vape tax, a registration fee for electric vehicles, the "Rate of Last Resort" and the first federal payment.
The new regulations that went into effect Wednesday aim to help Albertans better navigate their energy options and choose rates that fit their needs. Under the Utilities Affordability Statutes Amendment Act, 2024, the default electricity rate will be renamed from the Regulated Rate Option (RRO) to the Rate of Last Resort (ROLR).
"Albertans who don’t sign a competitive contract are automatically enrolled on the Rate of Last Resort from their local provider, which in the past has tended to be more expensive and volatile than competitive options." stated the provincial government. "To ensure Albertans are better informed about their electricity rate options, Alberta’s government has also introduced a rate confirmation requirement. The Utilities Consumer Advocate, under the Ministry of Affordability and Utilities, will contact all customers on the Rate of Last Resort every 90 days to confirm whether they would like to stay on the Rate of Last Resort and encourage them to explore their options."
According to the provincial government, approximately 26 per cent of residential customers purchase electricity through the "Rate of Last Resort" while approximately 29 per cent of eligible commercial customers and 40 per cent of farm customers purchase electricity through the "Rate of Last Resort."
Currently, the Rate of Last Resort varies month-to-month based on market prices and is approved by the Alberta Utilities Commission, not the government.
A new vape tax also started on Wednesday which is intended to discourage residents from using vaping products.
Reports state that the vape tax will impose a fee of $1.12 for every two millilitres (mL) of vape product for the first ten mL, and an additional fee of $1.12 for each subsequent 10 mL for items exceeding ten mL. In 2025–2026, the tax is anticipated to generate $18 million.
The new vape tax is similar to the federal "Vaping Duty" which is $1 for for every two millilitres (mL) of vape product for the first ten mL, and an additional fee of $1.12 for each subsequent 10 mL for items exceeding ten mL. This is currently in effect for Ontario, Quebec, Northwest Territories, and Nunavut.
Early on in the new year, the provincial government also plans to impose a $200 registration tax on electric vehicles, which is meant to be an alternative to what they don't pay in fuel tax.
According to reports, a date for the registration fee has yet to be determined.
Those who qualify for the GST/HST federal payment can expect their payment today as the 5th (when the payment is usually sent out) lands on Sunday.
You’ll find out if you qualify for the GST/HST credit when you file your taxes. Single Canadians without children may receive up to $519 for the full year (July 2024 to June 2025), or about $129 per quarterly payment. Married or common-law couples without children could receive up to $680 annually. Parents can also receive up to $179 per year for each child under 19.
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