- 80% of Saskatchewan homes heat with natural gas, their costs set to increase 31% thanks to Liberal’s so-called “carbon price”
Canadians for Affordable Energy: As Saskatchewan gets ready for the winter season, a new report shows the federal government’s carbon dioxide emissions tax is set to have a big impact on their ability to afford to heat their homes.
A consumer and household report on energy affordability for Canadians for Affordable Energy shows that homes using natural gas – the largest single source of energy used in Saskatchewan households – is set for a large price increase thanks to the federal government’s carbon tax.
About 8 in 10 Saskatchewan homes use natural gas for their heating and appliances. If a federal carbon tax is imposed, those natural gas costs would rise by 31% by 2022. This price increase is of particular concern because natural gas represents 53% of energy used by the typical household.
“Saskatchewan home owners should be prepared for an increase on their energy bills when the carbon tax is introduced," said report author Richard Laszlo. “The increase will be particularly heavy on natural gas customers.”
Natural gas is not the only energy source that will see costs going up. The carbon tax will also increase electricity costs in Saskatchewan by 19% and gasoline by 10%.
“Policymakers in Ottawa have made a purposeful decision to raise the price of hydrocarbon energy resources and that decision is going to hit Saskatchewan harder than some other provinces in Canada because of its energy mix and reliance on natural gas,” added Laszlo. “As the data demonstrates, there are no cheaper alternatives to natural gas and using other energy sources, including electricity, will cost provincial consumers more.”
Numbers contained in this release and report are based on a $50 per tonne of carbon dioxide emissions tax by 2022 as mandated by the federal government.
The federal government’s so-called carbon pricing backstop (aka tax on carbon dioxide emissions) will take effect next year. The tax will start at a minimum of $20 a tonne in 2019, rising by $10 each year to $50 a tonne by 2022.
A copy of the full report can be found HERE
Canadians for Affordable Energy is a national non-profit organization. We promote the benefits of affordable energy by informing Canadians about it, advancing policies that encourage it, and building a national constituency to support it. Keeping energy services affordable must be an ongoing public policy priority.
This report was developed by Richard Laszlo and his team at Laszlo Energy Services (LES). LES provides customized energy policy, strategy and communications expertise to natural gas, thermal and electric utilities, real estate property managers and developers, technology and service providers, and government clients. www.laszloenergy.com