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La Saskatchewan will stop collecting carbon tax on electric heating

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SaskPower offices in Regina, Saskatchewan, in January 2023.

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The standoff between Saskatchewan and Ottawa over the federal carbon tax is intensifying. On Thursday, Saskatchewan Premier Scott Moe announced that SaskPower, the Crown corporation responsible for the electricity grid, will stop collecting the carbon tax on electric heating, effective January 1, 2024.

This announcement comes weeks after the province announced that SaskEnergy would stop collecting the federal carbon tax on gas heating.

The premier explains that the province will need to determine who uses an electric heating system and what proportion of their monthly bill is for heating. But these are all details. We'll figure it out later, he said in a video posted on X (formerly Twitter).

Our government was able to make the decision to no longer collect a tax on natural gas because you own the natural gas [through SaskEnergy]. You are also the owner of SaskPower and that is why we have decided to no longer collect the carbon tax on electric heating from January 1, explains Scott Moe.

In this video, Mr. Moe appears with the MLA for the riding of Athabasca, Jim Lemaigre.

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According to the Prime Minister , although approximately 85% of Saskatchewanians heat their homes with natural gas, almost 15% use other heat sources, including many using electric heating.

Unfortunately, in northern Saskatchewan and communities like La Loche, Black Lake and Stony Rapids, people do not use natural gas for heating Their houses. Many use electricity, maintains Jim Lemaigre. I spoke to Premier Scott Moe about this and I welcome this decision.

In mid-November, the Saskatchewan government introduced legislation to allow the province to stop collecting the federal carbon tax on natural gas bills, starting January 1, 2024.

The bill introduced Thursday in the Saskatchewan legislature would designate the province as the sole distributor of natural gas in Saskatchewan.

Such a measure would provide legal protection to the directors of SaskEnergy, the Crown corporation responsible for the distribution of natural gas, in the event of non-payment of the tax carbon.

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