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The Ontario cap-and-trade program is a new provincially legislated emission trading system launched by the Ontario government to reduce the impacts of climate change. It places a price on the emissions from the burning of fossil fuels. Because natural gas is a fossil fuel, it is subject to this new charge. Kitchener Utilities (KU) must purchase emission allowances on behalf of its customers and will recover these costs through a new cap and trade charge of 3.5647 cents per cubic metre. This charge will be included as part of the delivery rate on your bill.
Kitchener Utilities' natural gas rates will change effective Jan.1, 2017 to be aligned with the new Ontario cap-and-trade charge.
The video below shows how the Ontario cap-and-trade program will affect Kitchener Utilities natural gas customers.
The new Ontario cap-and-trade charge is to impact the average residential system gas customer by 10 per cent, or about $71 per year. *The average residential customer uses 2,100 cubic metres of natural gas annually.
The video below produced by the Ontario government explains the cap-and-trade system.
To learn more about Ontario's cap-and-trade program visit www.ontario.ca/capandtrade.