SaskPower says it will not be passing on the upcoming federal carbon price increase to its customers.
The federal carbon price is set to increase from $40 to $50 per tonne on Jan. 1, 2022.
The Crown utility says reduced coal emissions and more reliance on renewable energy will allow customers to pay the same rate for the carbon price next year as they did in 2021.
“SaskPower is working hard to reduce its carbon emissions while keeping rates as low as possible,” Don Morgan, the minister responsible for SaskPower, said in a statement Wednesday.
“Because of reduced emissions from coal generation, the addition of more than 400 megawatts of wind, solar, and biomass, as well as an improved outlook on hydro generation, SaskPower is able to avoid passing federal carbon tax rate increases on to customers in 2022.”
SaskPower said it is committed to reducing its carbon dioxide emissions by at least 50 per cent from 2005 levels by 2030 and is aiming to reach net-zero emissions by 2050.
It aims to reach its goal by continuing to add renewable power generation capacity in the coming years.
The company said this commitment will help reduce the impact of the carbon price on its customers.
The carbon price was set at $20 per tonne on Jan. 1, 2019, and has increased by $10 per tonne yearly since then.
Starting in 2023, it will increase by $15 per tonne until reaching $170 per tonne in 2030.
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