Sask. has stopped charging carbon tax on heating. What does this mean for your bills and rebates?
CBC
Germaine Rhomberg worries about the possibility of carbon tax rebates being scaled down after the Saskatchewan government stops collecting the tax on heating bills in the new year.
"I'm very anxious because it's a big part of my economy. My budget is set every single month. It's a fixed income," Rhomberg, who lives in Saskatoon, said.
Saskatchewan Premier Scott Moe announced in late October that SaskEnergy, the provincial natural gas utility, won't remit the carbon charge on natural gas starting Jan. 1, 2024. The province later said SaskPower would do the same on electricity used to heat homes.
The move came after Ottawa announced it would exempt home heating oil, which is primarily used in Atlantic Canada.
In an email statement, Saskatchewan's Minister Responsible for Major Crown Corporations Dustin Duncan, whose portfolio includes SaskPower and SaskEnergy, said the removal of the federal carbon tax from SaskEnergy bills will save the average Saskatchewan family approximately $400 in 2024.
However, it is unclear how the move will affect the carbon tax rebate cheques Canadians get from the federal government.
Rhomberg's pays her rent with disability benefits she receives due to her juvenile diabetes and mental health. She said she only has about $200 left over every month. She depends on public transit, has few electrical gadgets and has found many of her household items by dumpster-diving.
She said the added $297.50 she gets every four months under Climate action incentive payment (CAIP) helps her immensely.
"For what I would call frivolous things like a device for my kids, or not-second-hand shoes. So, those big lumps, four times a year, make a big difference," she said.
"My kids' birthdays kind of depend on it, because my one's birthday is in October, the other's in January."
A spokesperson for federal Finance Minister Chrystia Freeland pointed out that the carbon pricing framework was upheld by the Supreme Court of Canada.
"The price on pollution puts more money back into the pockets of the majority of Canadians. This year, a family of four in Saskatchewan is receiving $1,360 back through pollution pricing rebates. And, starting in 2024, families living in rural communities will see a 20 per cent top-up," the spokesperson said.
"Pollution pricing rebates, which are direct support to families, are contingent on a province having the federal price on pollution."
"I'm sure for the premier of our province $300 lost four times a year is not a big deal," Rhomberg said. "But it is a significant portion of my economy."
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