SaskPower to stop collecting carbon tax on electric heat

As Premier Scott Moe promised Thursday, the Saskatchewan government is directing SaskPower to stop collecting the carbon tax on electric home heating.

The change is to start Jan. 1, and will help approximately 30,000 SaskPower customers in the province. People who live in northern communities often rely on electric heat as natural gas isn’t available in those regions.

According to the government, the move will reduce those customers’ power bills by an average of $21 per month.

The change follows a similar decision made in October, when the provincial government said SaskEnergy would stop collecting the carbon tax on natural gas.

“In response to the federal government’s decision to exempt the carbon tax on heating oil, our government is ensuring fairness for Saskatchewan families by removing the carbon tax on natural gas and electric heat,” Dustin Duncan, Saskatchewan’s minister responsible for SaskPower, said in a media release.

“By extending the carbon tax relief that SaskEnergy customers will receive to households who use electric heat, our government is protecting Saskatchewan families’ ability to heat their homes this winter.”

In October, Prime Minister Justin Trudeau announced a three-year exemption from the carbon tax on heating oil, which is mostly used in the Atlantic provinces. Only a small percentage of Saskatchewan homes use heating oil; most use natural gas.

At that time, Moe said the government’s decision to have SaskEnergy stop collecting the carbon tax on natural gas was “likely not” legal. However, Moe said due to the “inherent unfairness” of the federal government’s decisions, the provincial government would carve out Saskatchewan from the carbon tax.

The government release issued Monday said electric heating accounts for up to 60 per cent of power consumption for households that rely on that form of heat. To compensate for that, SaskPower will reduce the rate rider on those households’ bills by 60 per cent.

The release said there will be an application process for households that are seeking the rebate. Customers should contact SaskPower through its online contact form.