Brian Zinchuk is editor and owner of Pipeline Online
This was the carbon tax paid for a house and small shop in Hyas, SK, in January 2023, back when the carbon tax was still $50 a tonne. It will soon be $80 a tonne.
Starting January 1, 2024, both SaskEnergy and SaskPower will remove the federal carbon tax from home heating, the provincial government said in an Dec. 28 release. And the impact could make a big difference for many people, as seen in an example below.
“This will result in savings for approximately 98 per cent of Saskatchewan families who were unfairly left out of the federal government’s decision to exempt the carbon tax on home heating oil,” the government said.
“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. “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.”
While Trudeau increases the carbon tax on January 1st making life more expensive for Canadian families, our government is removing the carbon tax on home heating, making life more affordable.
⁰Starting January 1st, Saskatchewan families will no longer pay the carbon tax, or the… pic.twitter.com/5TnagJI29w— Scott Moe (@PremierScottMoe) December 28, 2023
The removal of the federal carbon tax from SaskEnergy bills, effective January 1, 2024, will save the average Saskatchewan family approximately $400 in 2024.
Heating accounts for up to 60 per cent of power consumption during the winter months for customers who rely on electric heat, so SaskPower will eliminate the carbon tax on that heating by reducing the federal carbon tax rate rider on their bills by 60 per cent. This will benefit approximately 30,000 SaskPower customers, reducing their power bills by an average of $21 per month through the winter.
Customers will still see a federal carbon tax charge on their January utility bills for natural gas or electricity used for heating that they used in the month of December. The federal carbon tax will be zero billed, appearing as both a charge and a reversal credit, on bills for usage on and after January 1, 2024.
For SaskEnergy customers on an Equalized Payment Plan, equalized payment amounts will be adjusted beginning in February, the government said.
Customers who believe that they are incorrectly being charged the federal carbon tax can contact SaskEnergy at 1-800-567-8899 or www.saskenergy.com/customer-support, and SaskPower at 1-888-757-6937 or contactus@saskpower.com.
- 0072 Outlaw Buckers and Oil Kings 20240072 Outlaw Buckers and Oil Kings 2024
- 0069 Sask Oil Show 2024 banquet tickets0069 Sask Oil Show 2024 banquet tickets
- 0071 Pride Upkeep 2024 Packages0071 Pride Upkeep 2024 Packages
- 0070 Sask Oil Show 2024 pre-register0070 Sask Oil Show 2024 pre-register
- 0068 Sask Oil Show 2024 booth0068 Sask Oil Show 2024 booth
- 0067 PFM SaskWorks Payroll Investment Plan0067 PFM SaskWorks Payroll Investment Plan
- 0066 WBPC Promo video 30 seconds0066 WBPC Promo video 30 seconds
- 0065 Anova Resources field operator Oxbow0065 Anova Resources field operator Oxbow
- 0064 Estevan OTS0064 Estevan OTS
- 0063 Turnbull Excavating hiring crusher0063 Turnbull Excavating hiring crusher
- 0062 TED_EPAC_Technology_300062 TED_EPAC_Technology_30
- 0061 SIMSA 2024 For Sask Buy Sask0061 SIMSA 2024 For Sask Buy Sask
- 0060 Arizona Lithium Lease building0060 Arizona Lithium Lease building
- 0059 Southeast College Heavy Equipment Operator0059 Southeast College Heavy Equipment Operator
- 0058 Royal Helium Steveville opens anonymous rocket0058 Royal Helium Steveville opens anonymous rocket
- 0055 Smart Power Be Smart with your Power office0055 Smart Power Be Smart with your Power office
- 0053 Kingston Midstream Westspur Alameda Click Before You Dig large text0053 Kingston Midstream Westspur Alameda Click Before You Dig large text
- 0052 Predator Inspections0052 Predator Inspections
- 0051 JML Hiring Pumpjack assembly0051 JML Hiring Pumpjack assembly
- 0049 Scotsburn Dental soft guitar0049 Scotsburn Dental soft guitar
- 0046 City of Estevan This is Estevan0046 City of Estevan This is Estevan
- 0041 DEEP Since 2018 now we are going to build0041 DEEP Since 2018 now we are going to build
- 0032 IWS Summer hiring rock trailer music
- 0022 Grimes winter hiring
- 0021 OSY Rentals S8 Promo
- 0018 IWS Hiring Royal Summer
- 0015 Latus Viro0015 Latus Viro
- 0013 Panther Drilling PO ad 03 top drive rigs
- 0011
- 0006 JK Junior
- 0002 gilliss casing services0002 gilliss casing services
- 9002 Pipeline Online 30 sec EBEX9002 Pipeline Online 30 sec EBEX
- 9001
Carbon tax example for 80 year old retired farmer from Hyas, Saskatchewan
Here’s a practical example of the carbon tax:
While home heating oil, also referred to as fuel oil, has dramatically declined in usage in Saskatchewan, it is still used in some instances, especially in rural areas without pipeline connections. Pipeline News editor Brian Zinchuk’s father had a heating oil furnace on the farm hear Hyas, until about nine years ago, at which point it had become unaffordable and a propane furnace was installed, reducing heating costs by well over half. But that was before any carbon taxes were implemented.
As for the impact of the elimination of the carbon tax on natural gas in Saskatchewan, here’s a real-world example of a 1,600 square foot home and small heated shop in the village of Hyas, from January, 2023, when the carbon tax was still $50 per tonne of CO2 equivalent. The home has a natural gas-fired boiler for water heat, natural gas fireplace and water heater. The shop was minimally heated with radiant natural gas heaters. This was paid by a retired pensioner on fixed income:
Total bill: $779.35
Gas usage: $529.12
Municipal surcharge: $26.46
GST on gas: $27.78
Federal carbon tax: $178.09
GST on federal carbon tax: $8.90
That same bill, based on the current rate of $65 per tonne, would see a $231.52 federal carbon tax. And in three years, when the rate will be $110 per tonne, would see a $391.80 carbon tax, for one month. GST would be on top of that. In 2030, with the federal carbon tax at $170 per tonne, the carbon tax would be $605.51, plus GST, for one month.
Here’s that same house and shop for all of 2023. Note, the shop was removed from the meter in November, resulting in a lower December bill.
| DATE | TOTAL | NATURAL GAS CHARGES | MUNICIPAL SURCHARGE | GST | FEDERAL CARBON CHARGE | FEDERAL CARBON CHARGE GST |
| December 12, 2023 | $306.46 | $194.55 | $9.73 | $10.21 | $87.59 | $4.38 |
| November 14, 2023 | $259.54 | $166.11 | $8.30 | $8.72 | $72.77 | $3.64 |
| October 13, 2023 | $163.17 | $110.14 | $5.51 | $5.78 | $39.75 | $1.99 |
| September 13, 2023 | $100.49 | $71.26 | $3.56 | $3.74 | $20.89 | $1.04 |
| August 14, 2023 | $91.01 | $65.23 | $3.26 | $3.42 | $18.19 | $0.91 |
| July 13, 2023 | $81.55 | $59.20 | $2.96 | $3.11 | $15.50 | $0.78 |
| June 13, 2023 | $117.09 | $81.82 | $4.09 | $4.30 | $25.60 | $1.28 |
| May 11, 2023 | $259.25 | $170.84 | $8.55 | $8.97 | $65.36 | $3.27 |
| April 14, 2023 | $590.04 | $398.63 | $19.93 | $20.93 | $143.38 | $7.17 |
| March 13, 2023 | $570.35 | $393.34 | $19.67 | $20.66 | $130.17 | $6.51 |
| February 13, 2023 | $634.79 | $437.09 | $21.86 | $22.95 | $145.61 | $7.28 |
| January 13, 2023 | $770.35 | $529.12 | $26.46 | $27.78 | $178.09 | $8.90 |
TOTAL |
$942.90 |
$47.15 |
Thus, the total carbon tax, plus the GST applied to it, totaled $990.05. Again, that was for an 80 year-old retired farmer, a pensioner on fixed income living in a small village in rural Saskatchewan. The removal of the carbon tax on Jan. 1 should result in a savings of just under a thousand dollars in one year for that pensioner.
- 0072 Outlaw Buckers and Oil Kings 20240072 Outlaw Buckers and Oil Kings 2024
- 0069 Sask Oil Show 2024 banquet tickets0069 Sask Oil Show 2024 banquet tickets
- 0071 Pride Upkeep 2024 Packages0071 Pride Upkeep 2024 Packages
- 0070 Sask Oil Show 2024 pre-register0070 Sask Oil Show 2024 pre-register
- 0068 Sask Oil Show 2024 booth0068 Sask Oil Show 2024 booth
- 0067 PFM SaskWorks Payroll Investment Plan0067 PFM SaskWorks Payroll Investment Plan
- 0066 WBPC Promo video 30 seconds0066 WBPC Promo video 30 seconds
- 0065 Anova Resources field operator Oxbow0065 Anova Resources field operator Oxbow
- 0064 Estevan OTS0064 Estevan OTS
- 0063 Turnbull Excavating hiring crusher0063 Turnbull Excavating hiring crusher
- 0062 TED_EPAC_Technology_300062 TED_EPAC_Technology_30
- 0061 SIMSA 2024 For Sask Buy Sask0061 SIMSA 2024 For Sask Buy Sask
- 0060 Arizona Lithium Lease building0060 Arizona Lithium Lease building
- 0059 Southeast College Heavy Equipment Operator0059 Southeast College Heavy Equipment Operator
- 0058 Royal Helium Steveville opens anonymous rocket0058 Royal Helium Steveville opens anonymous rocket
- 0055 Smart Power Be Smart with your Power office0055 Smart Power Be Smart with your Power office
- 0053 Kingston Midstream Westspur Alameda Click Before You Dig large text0053 Kingston Midstream Westspur Alameda Click Before You Dig large text
- 0052 Predator Inspections0052 Predator Inspections
- 0051 JML Hiring Pumpjack assembly0051 JML Hiring Pumpjack assembly
- 0049 Scotsburn Dental soft guitar0049 Scotsburn Dental soft guitar
- 0046 City of Estevan This is Estevan0046 City of Estevan This is Estevan
- 0041 DEEP Since 2018 now we are going to build0041 DEEP Since 2018 now we are going to build
- 0032 IWS Summer hiring rock trailer music
- 0022 Grimes winter hiring
- 0021 OSY Rentals S8 Promo
- 0018 IWS Hiring Royal Summer
- 0015 Latus Viro0015 Latus Viro
- 0013 Panther Drilling PO ad 03 top drive rigs
- 0011
- 0006 JK Junior
- 0002 gilliss casing services0002 gilliss casing services
- 9002 Pipeline Online 30 sec EBEX9002 Pipeline Online 30 sec EBEX
- 9001
Pipeline Online provides the in-depth coverage on energy issues in this province that no other media comes close to. It does NOT receive federal journalism subsidies. However, with recent action from Facebook to block news links, it’s important to follow Pipeline Online in other manners. The easiest is to check each morning at PipelineOnline.ca, with the top story posted at 7 a.m. Monday to Friday, and additional coverage throughout the day and weekend. But you can also follow on LinkedIn and Twitter. You can follow editor Brian Zinchuk online at LinkedIn as well (you’ll see more stories that way). You can subscribe to a weekly newsletter. And if you wish to advertise and support this journalism, call 306-461-5599.