Carbon Levy Part 2: How Will The Carbon Levy Affect Heating Bills?

The initiative of the Alberta carbon levy is to create revenue to support actions in reducing greenhouse gas emissions, as well as Alberta’s adaptability in regards to climate change. In order to create this revenue, this carbon tax will be charged on all carbon-emitting heating and transportation fuels such as natural gas, gasoline, diesel, and propane.

Homeowners utilizing natural gas furnaces in the Edmonton, Alberta area may be concerned about how the carbon levy will translate to their heating bill. While keeping in mind that 60% of households are eligible for full carbon levy rebates, let’s take a look at the estimated impact on heating bills.

The Estimated Annual Direct Cost

Below is a table depicting the estimated annual cost of the Alberta carbon tax in 2017 and 2018 per household size:

Household Size Estimated Cost in 2017 for Natural Gas Estimated Cost in 2018 for Natural Gas
Single $101 $152
Couple $124 $186
Family of Four $136 $205

Breaking Down the Direct Cost

Here is how the direct cost of natural gas is broken down:

To calculate what your heating bill will look like with the carbon levy, simply add your given energy rate in $/GJ and the cost of the carbon levy for this year of $1.011/GJ, and multiply this number by the amount of energy it takes to heat your home.

For example, if your energy rate is $3.30/GJ and it typically takes 20 GJ to heat your home, the equation would look like this:

($3.30/GJ + $1.011/GJ) x 20 GJ = $86.22

Compare this to your heating bill before the carbon tax was applied, and it looks likes this:

$3.30/GJ x 20 = $66

For this example, there is a $20.22 increase in the carbon tax.

Offsetting the Costs of the Carbon Levy

Although the Alberta Carbon Levy will increase the cost of heating bills, there are still several steps that you can take to help reduce costs and conserve energy, such as installing energy efficient equipment, changing your filters regularly, ensuring your filter is the correct size, and keeping up with regular maintenance on your natural gas furnace.

 Acclaimed! has all of the products and services that you need to make sure that your heating equipment is running as efficiently as possible. We are also here to answer all of your questions when it comes to your heating concerns. If you live in the Edmonton and surrounding area, contact us today!


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