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Federal Carbon Pricing Program

The federal carbon charge takes effect on Apr. 1, 2019

Person reviewing their bills

The federal carbon charge takes effect on Apr. 1, 2019

The federal carbon charge takes effect on Apr. 1, 2019

Person reviewing their bills

The federal carbon charge takes effect on Apr. 1, 2019

On Oct. 23, 2018, the federal government confirmed Ontario will be subject to a carbon-pollution pricing program under the Greenhouse Gas Pollution Pricing Act. Union Gas will bill, collect and remit a federal carbon charge from our customers for the natural gas they use (with the exception of facilities that hold an exemption certificate issued by the federal government). This new charge will show as a separate line item on your bill beginning in April 2019.

What is the federal carbon pricing program?

The federal carbon-pollution pricing program is a carbon emission pricing system comprised of two key elements:

  • Beginning Jan. 1, 2019 - an output-based pricing system (OBPS) for industrial facilities emitting 50,000 tonnes or more of carbon dioxide equivalent per year or more, with the potential for facilities emitting between 10,000 and 50,000 tonnes of carbon dioxide equivalent per year to voluntarily opt in to the system over time; and
  • Beginning Apr. 1, 2019 - a carbon charge applied to fossil fuels, including natural gas. The charge will not apply to facilities that are registered in the OBPS and hold an exemption certificate issued by the federal government.

How much will it cost?

The federal carbon charge for the natural gas you use will be 3.91 cents per cubic meter. This charge is expected to increase annually in April. Union Gas has applied to the Ontario Energy Board for approval of rates to recover the costs associated with the Greenhouse Gas Pollution Pricing Act, including the federal carbon charge.

Your total cost will depend on how much natural gas you use. For the average Ontario household, it will add about $86 to your annual natural gas bill.

Union Gas has programs available to help you manage your energy costs

Homes and businesses can manage the impact of this charge and reduce their energy bills by taking advantage of the Union Gas energy-efficiency programs and tips.

For your home: uniongas.com/savemoney

For your business: uniongas.com/savemoneyandenergy

We'll continue to keep you informed of changes related to the federal carbon charge and your bill here. For more information, visit the government's carbon pricing program website.