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How does the Federal Carbon Tax charge affect my bill?

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.

On April 1, 2021 the Federal Carbon Tax rate increased 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

For more information on the Federal Carbon Tax CLICK HERE.

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High Bill FAQs

  • I can't afford this bill. Are there any options for me?

    Absolutely! Direct Energy supports our customers and offers several ways to assist with managing your balance. We offer: Payment Arrangements (Log in to your Online Account or call 1-866-374-6299) Payment Extension (Log...

  • I'm on the Budget Billing plan and my bill has increased. Will this continue to happen?

    Budget billing is a great plan to help your bill amount remain consistent each month. There are a few possible reasons why your budget amount may change: Past due payments or payment not yet received from your last bill Budget...

  • How can I lower my energy consumption?

    Listed below are helpful energy tips that could help reduce your energy consumption: Unplug unused appliances Maintain or upgrade your furnace and AC unit Switch to LED lightbulbs Wash clothes in cold water Add motion sensors or...

  • What are distributor and flow through charges?

    Distributor charges are costs related to bringing the energy to your home (natural gas pipelines and/ or electricity wires). These rates are calculated and charged by your distribution company and are the same regardless of the...

  • How does the Federal Carbon Tax charge affect my bill?

    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...

  • Why has my bill increased so much from last month?

    A typical residential customer during the month of January consumes 20 GJ per month. Extraordinary cold spells coupled with more time spent at home could typically contribute to higher usage (above the average of 20 GJ/month). You...

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