Ontario Cap-and-Trade Program - Kitchener Utilities
Kitchener Utilities


Ontario Cap-and-Trade Program

The Ontario cap-and-trade program is a 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 cap-and-trade charge of 3.8719 cents per cubic metre. This charge is included as part of the delivery rate on your bill.


Update on the cancellation of the Ontario Cap-and-Trade Program

July, 2018

The new provincial government is taking steps to cancel the cap-and-trade program.  However, the details on how and when this will happen have not yet been released.  There are a number of legislated changes that will need to happen before the cap-and-trade charge can be removed from natural gas bills.  Kitchener Utilities will provide additional details once they are confirmed.

To learn more about Ontario's cap-and-trade program visit www.ontario.ca/capandtrade.


The video below produced by the Ontario government explains the cap-and-trade system.