Federal
Carbon
Tax
As part of the federal government’s carbon pricing system mandated under the Greenhouse Pollution Pricing Act, the federal carbon tax was applied to all fossil fuels in Alberta, including natural gas, starting on January 1, 2020.
Q: What is the federal carbon tax?
A: As part of the federal government’s carbon pricing system mandated under the Greenhouse Gas Pollution Pricing Act, the federal carbon tax was applied to all fossil fuels in Alberta, including natural gas, starting January 1, 2020.
Q: How does the federal carbon tax work?
A: Effective January 1, 2020, natural gas bills include a line item for federal carbon tax charges. The federal carbon tax applies to fuels that emit greenhouse gases when combusted, including the fuel that is used to heat homes and businesses.
Q: Will your natural gas bill increase?
A: Yes, your natural gas bill will increase as a result of the federal carbon tax by $4.0950825 per gigajoule (GJ) starting April 1, 2024. The federal carbon tax will change annually in April:
2020-2030 Federal Carbon Charge Rates for Marketable Natural Gas | ||
Year | $/Tonne of Carbon Dioxide Equivalent | $/GJ |
January 2020 | $20 | $1.0499523 |
April 2020 | $30 | $1.5762711 |
April 2021 | $40 | $2.1025899 |
April 2022 | $50 | $2.6289087 |
April 2023 | $65 | $3.3270867 |
April 2024 | $80 | $4.0950825 |
April 2025 | $95 | $4.8630783 |
April 2026 | $110 | $5.6310741 |
April 2027 | $125 | $6.3990699 |
April 2028 | $140 | $7.1670657 |
April 2029 | $155 | $7.9323762 |
April 2030 | $170 | $8.7003720 |
Q: What role does AUI play in the federal carbon tax?
A: All natural gas distributors in the Province of Alberta, including Apex Utilities, are responsible for calculating the federal carbon tax based on monthly consumption for customers in their respective service territories.
Customers receiving a bill from an energy retailer:
Energy retailers will pass the federal carbon tax amount, calculated by Apex Utilities, on to customers through their regular billing process.
Customers receiving a bill from Apex Utilities:
Customers that do not have an energy retailer will see the federal carbon tax on their Apex Utilities bill.
Q: How is the federal carbon tax calculated on customer heating bills?
A: The federal carbon tax rate is multiplied by the number of GJs consumed. The charge will appear as a separate line item called “Federal Carbon Tax” on your Apex Utilities bill or identified separately on your energy retailer bill.
Q: What is the impact to customers?
A: The net impact to individual customers will vary depending on a household’s energy use. For general information about the federal carbon tax, visit the Government of Canada website.
Q: What is the revenue from the federal carbon tax going to be used for?
A: The Government of Canada will determine how to apply the revenue generated from the federal carbon tax. To learn more about the specifics of the revenue generated, please visit the Government of Canada website.
Q: Who will qualify to receive exemptions from the federal carbon tax?
A: The federal government will determine who may be exempt from paying the federal carbon tax. Contact the Canada Revenue Agency (CRA) to determine if you are eligible or to download the applicable Exemption Certificate.
Once you have completed the CRA requirements, submit your Exemption Certificate along with a completed AUI Fuel Charge Exemption Form.
Q: How long will it take for my site to become exempt from the federal carbon tax?
A: Upon receipt of the appropriate documentation, please allow 5 to 7 business days for processing. Depending on your date of billing, the exemption may not appear on your bill within the month the forms were received.
Q: Will the exemption be backdated to January 1, 2020, regardless of when paperwork is received?
A: No, the federal carbon tax exemption will begin from the date Apex Utilities receives the exemption documentation. If you wish to have the exemption applied prior to that date, contact the Canada Revenue Agency (CRA) to determine how to proceed.
Helpful Links
Canada Revenue Agency
Government of Canada