Federal Carbon Tax

What’s happening to the Federal Carbon Tax?

Starting April 1, 2025, you will no longer be charged a Federal Carbon Tax on your natural gas usage. Learn more about changes to the consumer carbon price and federal fuel charge.

Will I still see Federal Carbon Tax charges on my bill after April 1, 2025?

If your bill includes natural gas usage from before April 1, you’ll still see a carbon tax charge for that portion.

Example: If your invoice covers March 15 to April 15, you’ll see carbon tax charges for gas used March 15-31. Any usage from April 1 onward won’t be taxed.

What should I do if I see a Federal Carbon Tax charge on my April bill?

Check the billing period listed on your invoice. If it includes days before April 1, the charge is correct. Still have questions? Our team is happy to help!

What’s happening to the Canada Carbon Rebate?

Since there's no longer a Federal Carbon Tax charge for natural gas usage, the Canada Carbon Rebate which was previously known as the Climate Action Incentive Payment (CAIP) is also wrapping up. The final Canada Carbon Rebate payment will be sent out by the government starting April 22, 2025. To make sure you receive it, be sure to file your 2024 income tax return by April 2, 2025. If you file later, don’t worry—you’ll still get it once your return is processed.

Where will I see the charge on my bill?

For any natural gas usage prior to April 1, 2025, you will see this charge in the Distributor and Government Charges section on your natural gas bill as "Federal Carbon Tax."

Where does the money I am paying for the Federal Carbon Tax go? Does Direct Energy keep it?

All funds collected through the Federal Carbon Tax go to the Government of Canada. Then, the government returns proceeds through direct payments to families and direct investments to reduce emissions.

Learn more about Canada’s carbon pollution pricing system.

Who do I talk to if I have specific questions about the Federal Carbon Tax?

For questions about the Federal Carbon Tax, contact the regional Prairies Office at 1-866-439-4202.

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