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Ontario to Reduce Cost of Natural Gas

Ontario’s Government for the People is acting to reduce the cost of natural gas for Ontario families and businesses, Premier Doug Ford announced today. This is part of the Ford Government’s overall commitment to put more money in people’s pockets and deliver immediate tax relief for lower and middle class families.

“Your government is committed to giving real relief to people all across Ontario, and helping small businesses and job creators like Troy’s Diner,” said Ford. “Reducing energy costs and making them more transparent is a key part of this promise. By removing the carbon tax from natural gas bills, we’re saving families about $80 a year and small businesses about $285 a year. Promise made, promise kept.”

The Ontario Energy Board (OEB) has been notified to take immediate steps to remove the cost of the carbon tax from natural gas rates by October 1, 2018. Greg Rickford, Minister of Energy, Northern Development and Mines, wrote to the OEB outlining the government’s expectations that natural gas utilities remove the cost for consumers, and ensure any over-collection of the carbon tax is refunded back to hardworking Ontario families and businesses.

“Eliminating the carbon tax will provide real relief to lower and middle class families and Ontario businesses,” said Minister Rickford. “This government remains committed to making life more affordable for all Ontarians.”

The orderly wind down of the carbon tax is a key step towards fulfilling the government’s commitment to put more money in people’s pockets and to give real tax relief to lower and middle class families. Eliminating the carbon tax removes a burden from Ontario businesses, allowing them to grow, create jobs and compete around the world.

 

Removing the Carbon Tax from Natural Gas Pricing

  • The Province revoked the cap-and-trade carbon tax regulation and prohibited all trading of emission allowances effective July 3, 2018.
  • Bill 4, The Cap and Trade Cancellation Act 2018, which aims to repeal the carbon tax, was introduced into the legislature on July 25, 2018.
  • Removing the carbon tax means a reduction of approximately 3.3 cents per cubic metre on the price of natural gas for Ontario consumers.
  • As of October 1, 2018, natural gas bills will no longer include the carbon tax. Any overcharges for the cap-and-trade carbon tax will be refunded to customers.
  • Ontario families will save about $80 a year.
  • Small businesses can expect to save about $285 a year.
  • The Ontario Energy Board is expected to provide direction to natural gas utilities no later than August 31, 2018, instructing utilities to file new customer rates with the carbon tax charges removed.

Increased Transparency

  • Effective July 3, 2018, the government filed Ontario Regulation 386/18, Prohibition Against the Purchase, Sale and Other Dealings with Emission Allowances and Credits (Revocation Regulation). The Revocation Regulation, made under The Climate Change Mitigation and Low-Carbon Economy Act, states that “… no registered participant shall, on and after the day this Regulation comes into force, purchase, sell, trade or otherwise deal with emission allowances and credit.”
  • On July 6, 2018, the Ontario Energy Board issued a Procedural Order instructing utilities to provide written confirmation that they have ceased cap-and-trade activities in line with Regulation 386/18. The utilities complied by July 13, 2018.

 

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