Alberta Carbon tax is gone, but consumer price cap on electricity will remain

kenney

CALGARY -

Alberta's carbon tax has been cancelled, but a consumer price cap on electricity — which the levy pays for — is staying in place for now.

June electricity rates are due out on Monday, about four days after the new UCP government did away with the carbon charge on natural gas and vehicle fuel.

Part of the levy's revenue was earmarked by the previous NDP government to keep power prices at or below 6.8 cents per kilowatt hour.

"The Regulated Rate Option cap of 6.8 cents/kWh was implemented by the previous government and currently remains in effect. We are reviewing all policies put in place by the former government and will make decisions that ensure more affordable electricity rates for job-creators and Albertans," said a spokesperson for Alberta's energy ministry in an emailed statement.

Albertans with regulated rate contracts and all City of Medicine Hat utility customers only pay that amount or less.

If the actual market price rises above that, the difference is paid to generators directly from levy funds.

The government has paid more than $55 million to utilities over the past year ending in March 2019, due to that rate cap.

Alberta Energy says the price gap program will continue, at least for the time being.

Related News

Sen. Cortez Masto Leads Colleagues in Urging Congress to Support Clean Energy Industry in Economic Relief Packages

WASHINGTON - U.S. Senator Catherine Cortez Masto (D-Nev.) led 17 Senate colleagues in sending a letter calling on Congress to include support for the United States' clean energy industry and workforce in any economic aid packages.

"As Congress takes steps to ensure that our nation's workforce is prepared to emerge stronger from the coronavirus health and economic crisis, we must act to shore up clean energy businesses and workers who are uniquely impacted by the crisis," said the senators. "This action, which has precedent in prior financial recovery efforts, could take several forms, including tax credit extensions or removal of the…

READ MORE
scotland power

Clocks are running slow across Europe because of an argument over who pays the electricity bill

READ MORE

electricity raindrops

The Cool Way Scientists Turned Falling Raindrops Into Electricity

READ MORE

solar panels

Saskatchewan to credit solar panel owners, but not as much as old program did

READ MORE

ev cost trend

GM president: Electric cars won't go mainstream until we fix these problems

READ MORE