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What is the Government of Canada Federal Carbon Tax?

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. Effective January 1, 2020, the Federal Carbon Tax is $1.050/GJ and it will increase to $1.576/GJ as of April 1, 2020. To learn more, see our FAQs below or visit www.canada.ca.


Frequently Asked Questions

What is the Federal Carbon Tax?

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

How much will I be charged on my monthly bill?

The amount that you will pay is based on how much natural gas you use. From January 1, 2020 to March 31, 2020, the tax will be calculated at $1.050/GJ and then increase to $1.576/GJ from April 1, 2020. The Government has estimated that for an average family of four, the yearly cost of the tax on their natural gas bill will be $160 or about $14/month.

Is this a Direct Energy Tax?

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.

Where will I see the charge on my bill?

There will be a separate line item on your bill that says "Federal Carbon Tax" and shows the amount.

Where does the money that I am paying for the Carbon Levy go? Does Direct Energy keep it?

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.

Do I have to pay the Federal Carbon Tax?

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.

Who do I talk to if I have specific questions about the Federal Carbon Tax?

Please contact the Canada Revenue Agency at fuelcharge@cra-arc.gc.ca or contact the regional Prairies Office at 1-866-439-4202.

Can DE help me become more energy efficient?

For lots of quick tips on reducing the energy use in your home, please visit www.directenergy.ca/learn.