The Federal Carbon Tax is part of the federal government's carbon pollution pricing system. It applies to fuels that emit greenhouse gases when combusted, including natural gas. It took effect in Alberta on January 1, 2020 and was designed to increase every April 1 thereafter, beginning on April 1, 2020. To learn more, see our FAQs below or visit www.canada.ca.
The Federal Carbon Tax is not a tax set by Direct Energy. As part of the Government of Canada to reduce greenhouse gas emissions, a tax was introduced on the price of all fuels that emit greenhouse gases. To learn more, visit www.canada.ca
The Federal Carbon Tax will continue to apply to all customers that consume natural gas. This means, regardless of which energy provider you are with, the tax will be included on your natural gas bill. We have a separate line on our bills to show you exactly how much you owe based on how much natural gas you've used. You will continue to see this charge in the Distributor and Government Charges section on your natural gas bill as "Federal Carbon Tax".
On April 1, 2021 the Federal Carbon Tax rate will increase from $1.576/GJ to $2.103/GJ. The amount that you will pay is based on how much natural gas you use. The Government has estimated an average family of four, consumes 100 GJ's per year, meaning the yearly cost of the tax on natural gas bills will increase from about $160 to $210. Remember that depending on the season, your monthly natural gas consumption changes, with the highest consumption falling in the cold winter months.
|Dates||$/Carbon tonne||Rate ($/GJ)|
|January 1, 2020 - March 31, 2020||$20||$1.050|
|April 1, 2020 - March 31, 2021||$30||$1.576|
|April 1, 2021 - March 31, 2022||$40||$2.103|
This is not a Direct Energy Tax. All Albertans will pay the tax no matter who their provider is, however Albertans will be eligible for a Federal Carbon Tax Rebate administered through the income tax system as a Climate Action Incentive payment. Details can be found at www.canada.ca/cai-payment.
You will continue to see this charge in the Distributor and Government Charges section on your natural gas bill as "Federal Carbon Tax".
All funds collected through the Federal Carbon Tax are submitted to the Government of Canada, which will return all direct proceeds through direct payments to families and direct investments to reduce emissions. Details can be found at www.canada.ca.
All Albertans will pay the Federal Carbon Tax, however the Government of Canada estimates that Albertans will be eligible for incentive payments through the personal income tax returns. Details can be found at www.canada.ca.
Please contact the Canada Revenue Agency at email@example.com or contact the regional Prairies Office at 1-866-439-4202.
For lots of quick tips on reducing the energy use in your home, please visit www.directenergy.ca/learn.