As of yesterday (Jan1), your SaskPower bill will increase on average by three per cent because the federal carbon tax is increasing from $50 to $65 per tonne. This is separate from the previous rate increase of four per cent, which came into effect on September first.

The federal government initiated a plan to tax carbon emissions in provinces where emission reduction plans don’t meet federal standards, and that’s why a carbon tax was imposed in Saskatchewan in 2019. The carbon tax started at $20 per tonne of emissions over the federal thresholds in 2019 and as of now is at $65 per tonne.

SaskPower explains on its website that the Crown Corporation submits the carbon tax to the federal government, and then the government returns all direct proceeds collected in Saskatchewan through direct payments to families and through investments to reduce emissions.