Carbon tax increase to be reflected on SaskPower bills

SaskPower customers will be paying more starting Jan. 1 as a result of an increase in the federal carbon tax.

The Crown corporation said Thursday it will be increasing the carbon tax amount on customers’ bills because the federal carbon tax applied to SaskPower’s carbon emissions is to rise from $30 to $40 per tonne on New Year’s Day.

“Our government recently implemented the 10 per cent Saskatchewan Economic Recovery Rebate on power bills, and I’m pleased to announce SaskPower will not pursue a rate increase in 2021,” Don Morgan, the minister responsible for SaskPower, said in a media release. “However, SaskPower customers will soon see a higher number on one part of their bill because of the increased federal carbon tax.”

SaskPower said the amount charged to each customer under the carbon tax will vary depending on consumption. It didn’t provide a range of the possible increases customers could face.

SaskPower started collecting the carbon tax from its customers in April of 2019. Annual increases in the tax are planned by the federal government until the figure reaches $170 per tonne by 2030.

The Saskatchewan government has challenged the constitutionality of the carbon tax in court. The Supreme Court of Canada heard the case in September, but has yet to render its decision.

In the interim, SaskPower has to collect the carbon tax.

More details about the tax’s impact on SaskPower bills can be found here.