Effective January 1, 2023, the Federal Carbon Tax rate rider will see a system-wide average increase of 3.0%. View the news release.

On January 1, 2019, the Federal Carbon Tax began being applied to our emissions from power-generating sources like coal and natural gas.

The Federal Carbon Tax increases annually. In 2019 it was set at $20/tonne of CO2 emissions above established thresholds. It then rose $10/tonne per year, reaching $50/tonne on January 1, 2022. As of January 1, 2023, it will increase by $15/tonne per year until 2030.

View more information on federal carbon pricing.

Federal Carbon Charges and Your Power Bill

The Federal Carbon Tax appears as a separate charge on your power bill. The tax applies to how much power you use, and not to fixed amounts like the basic monthly charge.

On an annual basis, the amount charged is revised to reflect the yearly per tonne increase of the carbon tax and the decreasing emissions thresholds applied to coal power generation.

Learn more about how this charge will appear on your bill.

Frequently Asked Questions

How much will this cost?

For residential customers, the 2023 Federal Carbon Tax cost increase will average 1.9% ($31 per year), effective January 1, 2023. The actual amount charged will vary depending on your power use.

Where does this money go?

We don’t keep any of the carbon tax collected. We’re required to submit all carbon tax revenue collected during 2019–2022 to the Government of Canada. 

On November 22, 2022, the federal government approved Saskatchewan's proposal for an updated Output-Based Performance Standards (OBPS) program, which now includes electricity generation. As a result, the 2023-2030 carbon tax revenue we collect will be paid to the provincial government, effective January 1, 2023.

The provincial government is developing the mechanism to reinvest these funds back into Saskatchewan.

Why can’t SaskPower just pay this tax and not pass it on to customers?

Our 2022 emissions payment is estimated at $180 million. The cost will continue to grow as the annual cost per tonne increases and emissions thresholds decrease. That would mean less to invest in our province’s power system to ensure reliable and sustainable power for our customers.

We're committed to reducing greenhouse gas emissions by at least 50% from 2005 levels by 2030. We’ll get there in several ways, including increasing the renewable generation capacity in our system. However, the transition of our power system to lower-emitting generation sources will take some time.

Learn more:

Dart Image
Provide Your Feedback