Natural gas is dependable and affordable energy that enhances people’s quality of life and helps local business and industry prosper and grow. It continues to be a low cost energy source and remains an economical choice for home and water heating in Ontario.
What is the federal carbon charge?
As part of the federal government’s carbon pricing program, a carbon charge applies to fossil fuels sold in Ontario, including natural gas. On April 1, 2024, the federal carbon charge for natural gas increased to 15.25 cents per cubic metre (cents/m3). This charge increases annually each April. You can see how the price will change each year in the chart below.
| 2019 – 2030 Federal Carbon Charge Rates for Marketable Natural Gas | ||
|---|---|---|
| Year | $/tCO2e* | cents/m3 |
| 2019 | $20 | 3.91 |
| 2020 | $30 | 5.87 |
| 2021 | $40 | 7.83 |
| 2022 | $50 | 9.79 |
| 2023 | $65 | 12.39 |
| 2024 | $80 | 15.25 |
| 2025 | $95 | 18.11 |
| 2026 | $110 | 20.97 |
| 2027 | $125 | 23.83 |
| 2028 | $140 | 26.69 |
| 2029 | $155 | 29.54 |
| 2030 | $170 | 32.40 |
*tonnes of carbon dioxide equivalent
There is also a facility carbon charge included in the delivery or transportation charge on your bill, which effective April 1, 2024, for the average residential customer will add about 31-34 cents annually, depending on your location. This charge is associated with the costs to operate Enbridge Gas' facilities.
All of the money that we collect for the federal carbon charge goes to the government.
What does this mean for you?
The federal carbon charge has been included on customers' bills since August 2019 and shows as a separate line item. It's forecasted that for the average Ontario household, the federal carbon charge will add about $336-$366 to your annual natural gas bill between April 2024 and March 2025 (depending on your location). This will continue to change annually as the rate increases. Your total cost depends on how much natural gas you use but can be determined by multiplying the federal carbon charge rate by the number of cubic metres of gas you used (which can be found on your natural gas bill).
The federal government has indicated that direct proceeds from the carbon pricing program will be returned to Ontario residents through the Canada Carbon Rebate (CCR), previously known as the climate action incentive (CAI) payment. Similar to the CAI payment, the federal government will deliver CCR payments on a quarterly basis, as four equal payments delivered on the 15th of April, July, October and January every year. In order to receive a CCR payment, individuals need to file an annual tax return. For an average Ontario family of four, the annual total of the quarterly CCR payments from April 2024 to March 2025 is expected to be $1,120.
Learn more about the federal carbon pollution pricing program from the Government of Canada.
Large volume customers
Large volume customers who may be required or eligible to register with the federal government in order to receive full or partial exemption from the federal carbon charge can find more information here.
