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How Alberta's Carbon Levy Will Impact Natural Gas Consumers

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Changes are coming to the price of natural gas in Alberta.

As part of its Climate Leadership Plan to reduce greenhouse gas (GHG) emissions, the Government of Alberta is introducing a levy on the price of all fuels that release GHG emissions when combusted, including natural gas. The levy will be applied to all of Alberta’s natural gas consumers beginning on January 1, 2017, regardless of whether or not you’re with a retail energy supplier.

The cost impact to customers will vary depending on how much natural gas you use. In 2017, the Carbon Levy will be calculated at $1.011/gigajoule (GJ) and will increase to $1.517/GJ in 2018. The Government has estimated that for a business consuming 500 GJ/year, the cost for 2017 will be 500 GJ x $1.011 or $505.50/year. Please keep in mind that as your consumption increases in the winter months, the cost impact will also be higher.

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Beginning next year, Direct Energy Business will add a line item to your bill labeled “Carbon Levy.” Your charge in this line item will be equal to your usage multiplied by $1.011/GJ in 2017 or $1.517/GJ in 2018. All funds collected for the Carbon Levy are directly submitted to the Government of Alberta to support their Climate Leadership Plan

There are a limited number of exemptions available for First Nations on First Nations land, the Government of Canada (exemption certificates will be issued to these entities) and those under the Specified Gas Emitter Regulation (SGER).

To learn more about Alberta's carbon levy, visit our FAQs and Resources page and register for our next Energy Market Update webinar on December 6.

Posted: November 28, 2016