May 23, 2019

Ottawa’s Carbon Dioxide Tax will Punish Albertans with Higher Electricity and Natural Gas Prices – Report

Canadians for Affordable Energy: New Alberta Premier Jason Kenney has promised to axe Alberta’s carbon dioxide tax on May 30, a positive move that would save Alberta taxpayers $1.4 billion. But before Albertans celebrate, federal Environment Minister Catherine McKenna says she’s preparing to impose a federal carbon tax on the province. New numbers show that Ottawa’s carbon tax will hit Albertans hard in the wallet.  

A consumer and household report on energy affordability for Canadians for Affordable Energy shows electricity and natural gas prices are about to take a big jump as a result of Ottawa’s carbon tax.  

Nine in ten Alberta homes use natural gas for their heating and appliances. When a federal carbon tax is imposed, those natural gas costs would rise by 49% by 2022. This price increase is of particular concern because natural gas represents 53% of energy used by the typical household.

Electricity costs, which are already more expensive, will also jump – prices will go up by 50% by 2022 because the province’s power generation is largely made up from fossil fuels. Alberta’s electricity generation is made up of 47% natural gas and 40% from coal.

“Alberta home owners should be prepared for an increase in their tax bill when the federal carbon tax is introduced," said report data analyst Richard Laszlo. “The impact of the carbon tax will be felt through higher prices for electricity and natural gas”.

Natural gas and electricity are not the only energy sources that will see costs going up. The carbon tax will also increase gasoline costs in Alberta by 11% by 2022.

Numbers contained in this news release and report are based on a $50 per tonne of carbon dioxide emissions tax by 2022 as mandated by the federal government.

A copy of the full Canadians for Affordable Energy report can be found HERE.

Canadians for Affordable Energyis 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