Federal Carbon Charge - Kitchener Utilities
Kitchener Utilities


Federal Carbon Charge

On June 21, 2018, the Federal Greenhouse Gas Pollution Pricing Act received Royal Assent.  The Greenhouse Gas Pollution Pricing Act establishes a federal carbon pricing program on greenhouse gas emissions on any province or territory that does not have their own carbon pricing system in place.  The Ontario cap-and-trade charge ended effective October 1, 2018.  So as a result, Ontario must comply with the Federal Greenhouse Gas Pollution Pricing Act.

Learn more about the Federal Carbon Pricing Program from the Government of Canada.

How does this impact you?

Beginning April 1, 2019, all fossil fuels, including natural gas, sold in Ontario will be subject to a carbon charge.  On behalf of the federal government, we will bill, collect, and remit these charges.

We estimate that the bill impact from April 2019 to December 2019, for the average residential customer (who uses 2,100 cubic metres of natural gas annually), will be approximately $44.20 for this year.

The federal government has indicated Ontario residents will receive a tax-free climate action incentive payment (estimated by the federal government to be about $300 for an average Ontario household) after filing their 2018 tax return.

How much is the charge?

The 2019 carbon charge for natural gas in Ontario will be 3.91 cents per cubic metre of natural gas used.

You will see a new charge on your utility bill effective April 1, 2019 that says "Federal Carbon Charge" for this program.

How does this impact large business customers?

Beginning January 1, 2019, an Output-Based Pricing System (OBPS) was implemented for large industrial carbon emitters.  The federal carbon charge will not apply to facilities that are registered in the OBPS and hold an exemption certificate issued by the federal government.  If your business qualifies for exemption from this charge, you can submit a request for exemption to Kitchener Utilities by completing the following form by March 25, 2019.

Learn more about the Federal OBPS from the Government of Canada.


Information for Suppliers and Energy Marketers

The below information is for companies that supply natural gas to Kitchener Utilities or deliver natural gas to Kitchener Utilities on behalf of a direct purchase customer.

Kitchener Utilities has registered with the Canada Revenue Agency (CRA), and it's fuel exemption certificate is available to all contracting parties, so that Kitchener Utilities can be exempt from the federal carbon charge.

Kitchener Utilities Fuel Charge Exemption Certificate.