Canadian Households Heating with Natural Gas are in for a Gaseous Disturbance Costing Billions

The NRC (Natural Resources Canada), reported, of the 14,790,000 households in 2018 in Canada, 50.1% (7,412,000) heated their homes with natural gas.  Those households are now experiencing higher prices to heat their homes as a result of increased prices for the commodity (to a lesser extent) and more for those “carbon taxes”, set to jump to $50.00 a ton effective April 1, 2022 from the $40/ton currently applied. 

The average household heating with natural gas uses an average of 88.4 gigajoules annually according to CER (Canada Energy Regulator) and are charged the carbon tax for the fuel they consume.  Reviewing my recent bill disclosed the “carbon tax” was 45.7% of the fuel cost and as of April 1, 2022 that will increase to 57.2%. By 2030 the carbon tax will continue its rise reaching $170/ton and will represent 194% of the cost of natural gas (should the commodity price remain at current levels).  Couple that increase, with the HST which is applied on the carbon tax and most homes heating with natural gas in 2030 will be unable to afford to keep their indoor temperature much above freezing.

Those 88.4 gigajoules the average household uses, reputedly emit about 4.9 tons annually so come April 1st the carbon tax will be $245.00 plus another $31.85 for the HST (Ontario’s combined rate is 13%) bringing annual costs to $276.85 in Ontario.  

The worst is yet to come as by 2030 the carbon tax will be $833.00 plus $108.29 in HST charges per average household at 88.4 gigajoules meaning taxes alone will be $941.29.

Over the next 12 month those households using natural gas as a heating source will ante up $1.816 billion and by 2030 that portion of the “carbon tax” will be contributing $6.174 billion to the wasteful politicians and bureaucrats then in power. It should be noted households heating with natural gas generated 36.3 megatons of emissions equating to 5% of Canada’s total emissions for 2018 reported as; 725 megatons (1.5% of global emissions) according to the Government of Canada.

One should note in the effort to reach “net-zero” targets agreed to at COP 26 what we natural gas household users will be contributing to the government’s coffers is only scratching the surface as our manufacturing, agricultural sector, tourism sector, etc. etc. will also be coughing up billions of dollars.  The foregoing basically means everything we consume using natural gas will be affected.  

The Canadian manufacturing sector alone consumes almost as much natural gas as those 7,412,000 households utilizing 646.5 petajoules versus the 655.2 consumed by households.  What that means is everything manufactured involving natural gas will be affected. Canadian manufacturers in a competitive market will be forced to either absorb those costs or close up shop and/or move to a US state without a “carbon tax” costing job losses in Canada.  Moving to another province won’t solve the problem as a “carbon tax” is applicable in all provinces and territories in Canada. 

Hitting those in the manufacturing and other sectors won’t end with those costs added to the products they create as the “carbon tax” also increases transportation costs as it is included in the price of gasoline and diesel fuels further driving up inflation.

The Federal Government somehow thinks removing approximately 75 megatons of CO 2 emissions will save the planet but its effect will instead kill jobs in Canada and enrich other countries such as China. 

The time has come for the Trudeau led government and his Minister of the Environment and Climate Change, Steven Guilbeault to kill the “carbon tax”!

Eliminating Canada’s 1.5% of global emissions will not change the climate in any way!

Current Environment Minister Steven Guilbeault in his former job

Author: parkergallantenergyperspectivesblog

Retired international banker.

10 thoughts on “Canadian Households Heating with Natural Gas are in for a Gaseous Disturbance Costing Billions”

  1. You do understand the people of Ontario are happy, hell overjoyed, to pay this in their fight against global warming. They pray for line 5 to be shut down so committed to the program they are.

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  2. My Enbridge January carbon tax was ~ $20 +HST, ~10% of total $130, ~245 cum, 10 gigajoules , energy conservation is the easiest option to lower carbon tax. I am no fan of carbon tax, does nothing to solve our energy or climate challenges, a tax grab imho. Electric heat pumps are the next disaster, had one 30 years ago, freezes up went you actually need the heat, law of thermodynamics has not changed, hard to get 50 degree temperature raise , heat return air to 120 , when OD air is below freezing.

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    1. The snow at the china winter olympics this year is 100% man made.
      Where do you get your “facts”. ? But just for the record, i hate all forms of taxation, and the only way to get rid of the carbon tax is to vote Trudeau out of power.

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  3. Good analysis, Parker. Thank you for breaking the costs down into terms that people can understand. The added costs of the Climate measures affecting the cost and secure availability of energy to Canadian consumers represents not only an assault on consumer’s access to the energy supply they need, but a deliberate effort to drive all emissions-intensive industries out of Canada. The economic harm will be incalculable, and we must always be reminded that it will have an insignificant effect on global emissions. In other words, even if the climate catastrophe theses were correct, which it is not, the damage imposed on Canadians will have zero benefits in terms of global emissions or temperatures. Climate policy is hopelessly expensive and futile virtue signalling.

    Liked by 2 people

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