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ARTICLE · 05 SEPTEMBER 2018

Premier Doug Ford Directs OEB To Remove Carbon Tax

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On August 29, 2018 Premier Doug Ford announced the removal of the cost of carbon tax from natural gas rates by October 1, 2018.

CanadaEnvironment
Paula Lombardi
Paula Lombardi
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On August 29, 2018 Premier Doug Ford announced the removal of the cost of carbon tax from natural gas rates by October 1, 2018. The Minister of Energy, Norther Development and Mines, Greg Rickford, wrote to the Ontario Energy Board ("OEB") setting out the government's expectations that natural gas utilities remove the cost for consumers, and ensure any over-collection of the tax is refunded. The OEB is expected to provide direction to natural gas utilities no later than August 31, 2018 instructing utilities to establish new customer rates with the carbon tax charges removed.

This announcement comes on the heels of the federal government's announcement on July 27, 2018 that large industrial companies will face less-stringent threshold on emissions when Ottawa's carbon tax rolls out on January 1, 2019. The federal government's update on the output-based pricing system ("OBPS"), also known as the carbon tax, indicates that new thresholds will be used in determining when

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