The Federal Fuel Charge (sometimes referred to as the Federal Carbon Tax by retailers on utility bills) was implemented in Alberta as of January 1, 2020.
The Federal Fuel Charge appears as a separate line item on natural gas bills and consumers must pay it just like any other federal charge, such as the GST.
Visit Finance Canada’s website for more information on the fuel charges that apply in Alberta for 2020–2022.
The Federal Fuel Charge puts a price per tonne of carbon dioxide equivalent (CO2e) emissions for home heating fuels. Rates increase on April 1 of each year as the federal government increases the carbon price by $10 per tonne a year until it reaches $50 per tonne in 2022.
This equates to:
Year |
Carbon price ($/GJ) |
| January-March 31, 2020 | 1.0499523 |
| April 1, 2020 – March 31, 2021 | 1.5762711 |
| April 1, 2021 – March 31, 2022 | 2.1025899 |
| April 1, 2022 onward | 2.6289087 |
Some consumers may be exempt from paying the Federal Fuel Charge. For more information, visit the Canada Revenue Agency (CRA) website.