As part of the federal government’s carbon pricing system, a Federal Carbon Tax will be applied to all fossil fuels, including natural gas, starting on April 1, 2019.
As a Registered Distributor of natural gas under the Greenhouse Gas Pollution Pricing Act, TransGas will collect the required amount each month and remit the charges to the federal government.
- See new Fuel Charge Notice: Distributors Under the Greenhouse Gas Pollution Pricing Act (GGPPA)
- Note the following special rule for marketable natural gas (MNG) delivered by means of a distribution system:
- “Under section 14, when MNG is delivered to a person by means of a distribution system, the person that is considered to deliver the MNG is the registered distributor that measures, on a regular basis and for the purpose of billing the person or providing the person’s billing information to a third party, the person’s consumption or usage of MNG that is delivered by means of the distribution system.”
- GGPPA definition of a distribution system:
- “A pipe or any system or arrangement of pipes for the delivery or distribution of marketable natural gas to ultimate consumers or users.”
- The TransGas natural gas transmission system is considered a distribution system
- TransGas is the person considered to deliver the MNG as TransGas measures the MNG delivered by its pipeline system.
When determining or discussing with CRA whether your company should register as a distributor of marketable natural gas in Saskatchewan, please take the above information into consideration.
- If fully exempt from the carbon charge, there will be no change to your invoice.
- There will be a new section clearly identified as the Federal Carbon Tax if the carbon charge applies to natural deliveries on your invoice.
- The carbon charge is calculated based on the amount of natural gas delivered in 10³m³.
- GST is applied to the carbon tax amount. PST is not applicable.
- If a delivery is exempt, there will be no carbon charge for the associated delivery meter.
- The carbon charge on natural gas is a rate set by the Government of Canada.
- Starting April 1, 2019 delivery service contract holders will see a new charge of approximately $1/GJ ($39.10 per 10³m³) plus GST on invoices, unless exemption requirements are met.
- The federal government determines exemptions from the carbon charge.
- The provincial Prairie Resilience strategy Output-Based Performance Standard applies to large emitters in Saskatchewan. Some facilities may be exempt through this program. Contact Prairie Resilience for more information and to register.
- Contact Canada Revenue Agency (CRA) to determine if your company is eligible for exemption through CRA, to register and/or to download the applicable Exemption Certificate for all exemptions.
- TransGas does not have the authority to apply for an exemption on your behalf.
- Once you have completed requirements for an exemption from either the provincial or federal government (see additional links below), complete the TransGas Fuel Charge Exemption form, together with a copy of the CRA exemption certificate and submit to TransGas.