Carbon tax to drive up SaskPower bills starting Jan. 1

Saskatchewan may be getting a break from the carbon tax on home heating, but the federal tax will still drive up SaskPower bills starting on Jan. 1.

The Crown power corporation said the carbon tax will increase from $65 to $80 on each tonne of carbon dioxide emissions.

“To cover this increase, the federal Carbon Tax rate rider on SaskPower bills will require an average increase of 0.5 per cent,” SaskPower explained in a statement.

While the specific amounts will vary based on usage and rate class, SaskPower said the average residential customer will see an increase of around $5 during 2024, bringing their carbon tax bills up to $85.

“The average farm customer will see an increase of $13, for a total federal carbon tax bill of $238 in 2024,” the utility added.

Rupen Pandya, SaskPower’s CEO, said the Crown is working to change the way it generates power, which has helped keep the increase low for 2024.

“For example, next year we expect the Great Plains Power Station to come online, providing the province with 377 (megawatts) of lower-carbon baseload power. We are also continuing to invest in renewables, with the 200 MW Bekevar Wind Facility also expected to come online by the end of the year,” Pandya said in a statement.

Between 2019, when the carbon tax was introduced, and the end of 2024, SaskPower estimated that its customers will have paid $1 billion in federal carbon taxes.

More information about the carbon tax on SaskPower bills, and relief from the tax for those who use electric home heating, can be found on the Crown corporation’s website.

–Editor’s Note: This story has been amended following a correction from SaskPower.