Power customers in Alberta, Saskatchewan to see carbon levy increase folded into costs

By MEDICINE HAT NEWS on December 20, 2022.

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Medicine Hat News

Power customers in Saskatchewan and Alberta will see an increase to the federal carbon levy folded into their costs in the new year, regulators in both provinces have announced.

SaskPower stated on Dec. 9, the increase of the federal carbon levy from $50 per tonne this year to $65 in 2023 will add about 3 per cent directly onto bills for electricity from the Crown corporation.

In Alberta, where the province has an agreement in place with Ottawa to cover large emitters, the price per tonne will also rise but that amount doesn’t appear on bills.

Instead, power producers in Alberta’s deregulated market recover costs in prices they bid into the supply market. The price of carbon offsets issued under the TIER system will also rise in commiserate fashion.

According to City of Medicine Hat financial statements this fall, the city-owned power plant expects carbon compliance costs related to its emissions will be $4.9 million in 2022.

The consumer carbon levy on natural gas used for home-heating is charged differently and directly to consumers on bills.

That rate sat at $2.69 per gigajoule in 2022 and will rise to $3.30. The charge on gasoline will rise 3.3 cents to a total of 14.3 cents per litre on April 1, 2023.

At the same time, the rebate amount for a family of four in Alberta will rise to $1,544 per year.