Legislation introduced to cut carbon tax from SaskEnergy bills

Legislation introduced in Saskatchewan on Thursday will remove Ottawa’s carbon tax from SaskEnergy bills starting Jan. 1.

The provincial government said the move will save Saskatchewan families an average of $400 in 2024.

The move follows a promise Premier Scott Moe made on Oct. 30, in response to Justin Trudeau’s announcement of a carbon tax exemption for homes heated with oil, which are primarily located in Atlantic provinces. Saskatchewan’s homes are largely heated with natural gas, prompting widespread accusations of unfairness from Ottawa.

In a rare unanimous vote in Saskatchewan’s legislature, the opposition NDP also called on Ottawa to expand the exemption to include those who use natural gas for home heating.

“This exemption is a clear recognition that Canadians are struggling with crushing inflation and higher costs but it has specifically left out relief for the people of Saskatchewan, Manitoba and Alberta,” NDP Leader Carla Beck said late last month.

In a previous interview with 650 CKOM’s John Gormley, Moe admitted that it’s “likely not” legal to have SaskEnergy stop collecting the carbon tax.

“Our government is taking the necessary steps to protect Saskatchewan families’ ability to afford to heat their homes this winter by removing the federal carbon tax from the natural gas bills of residential customers,” Dustin Duncan, the minister responsible for SaskEnergy, said in a statement.

“This legislation will give our government, and me as minister, the sole authority and responsibility for decisions regarding the collection and remittance of the federal carbon tax on SaskEnergy bills while also providing protection for SaskEnergy employees and board members.”

The new bill – titled The SaskEnergy (Carbon Tax Fairness for Families) Amendment Act – will designate SaskEnergy as the sole registered distributor of natural gas in the province, while “all powers, rights, authorities, responsibilities and obligations” under the federal Greenhouse Gas Pollution Pricing Act will be held by the provincial government.

That, according to the province, means if there is backlash from Ottawa for the move, it will fall on the government rather than SaskEnergy employees and directors.

“We still believe the federal government should remove the carbon tax on everything for everyone,” Duncan added. “But until that happens, our government will ensure fairness for Saskatchewan families by taking the carbon tax off their SaskEnergy bills.”