Alberta Carbon Levy to Increase Cost of Natural Gas Supply | Direct Energy Business

As part of the Government of Alberta’s Climate Leadership Plan to reduce greenhouse gas emissions, they are introducing a levy on the price of all fuels that emit greenhouse gases when combusted – which includes natural gas. The levy will be applied to all of Alberta’s natural gas consumers beginning on January 1, 2017, regardless of whether or not you’re with a retail supplier.


On the Web:

Download: Climate Leadership Q&A

Phone: 310-0000 (Alberta only);
Phone: 1-780-427-2711 (outside Alberta)


What is the cost impact?

The Carbon Levy will be calculated at $1.011/GJ for 2017 and will increase to $1.517/GJ in 2018–so the impact will vary based on how much natural gas you use. The Government has estimated that for a business consuming 500 GJ/year, the cost for 2017 will be 500 GJ x $1.011 or $505.50/year. Please keep in mind that as your consumption increases in the winter months, the cost impact will be higher.

Who is exempt from the levy?

Limited exemptions are available for First Nations on First Nations land, the Government of Canada (exemption certificates will be issued to these entities) and those under the Specified Gas Emitter Regulation (SGER). To find out if you are eligible to claim certain exemptions, please visit the Alberta Government website.

Where will I see the additional costs on my bill?

Direct Energy Business will add a line item to your bill labeled “Carbon Levy.” Your charge in this line item will be equal to your usage multiplied by $1.011/GJ in 2017 or $1.517/GJ in 2018.



What does Direct Energy Business do with the Carbon Levy funds collected?

All funds collected for the Carbon Levy are submitted to the Government of Alberta to support their Climate Leadership Plan.

How did this levy come about?

Alberta is developing a new strategy on climate change based on recommendations put forward by the Climate Change Advisory Panel. This strategy focuses on four key areas that the Alberta government has moved forward on:

  • Phasing out emissions from coal-generated electricity and developing more renewable energy
  • Implementing a new carbon price on greenhouse gas emissions
  • A legislated oil sands emission limit
  • Employing a new methane emission reduction plan

What else do I need to know about this levy?

It’s important to note that other commodities, such as gasoline, are also subject to the Carbon Levy, so keep this in mind as you plan your budget for 2017 and 2018.