Carbon tax is gone, but consumer price cap on electricity will remain

Alberta’s carbon tax has been cancelled, but a consumer price cap on electricity — which the levy pays for — will remain in place for the time being.

June electricity rates are due out on Monday, about four days after the new UCP government did away with the carbon charge on natural gas and vehicle fuel.

Part of the levy’s revenue was earmarked by the previous NDP government to keep power prices at or below 6.8 cents per kilowatt hour.

Albertans with regulated rate contracts and all City of Medicine Hat utility customers only pay that amount or less.

If the actual market price rises above that, the difference is paid to generators directly from levy funds.

Alberta Energy says the price gap program will continue, at least for the time being.


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