The Liberal’s cap and trade program will come into effect next month and that means your natural gas bill will go up says the Ontario Energy Board, to the tune of about $6.40 per month for the average residential customer.
What is cap and trade?
On January 1, 2017, Ontario begins a cap and trade program as part of changes intended to lower levels of greenhouse gas (GHG) emissions across the province.
As part of the program, there will be costs related to the GHG emissions from natural gas used in homes and businesses. The government has indicated that the funds it collects through cap and trade will go to programs – like energy conservation – to reduce GHG emissions. Below is the Ontario Government’s video that describes cap and trade:
The OEB says a typical NRG customer will see a $6.98 increase on their monthly gas bill and Union Gas customers can expect to pay between $4.65 and $13.54 more a month depending on which zone they live in.
Under cap-and-trade, Enbridge, Union Gas and NRG are required to manage their own business operations and buy allowances to cover the emissions that their customers, including Ontario households and small businesses, produce.
The OEB says that despite these increases customers will still be paying less than they were in peak periods in 2009 and 2014 because prices were high in the markets and the weather was very cold.
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