I did a dumb thing the other day, and wandered into the comment section on an article about Alberta's new TIER carbon levy on large emitters.
One comment stood out (not linking, because I don't want to single out a particular person; I see this kind of talk often), where the pointed out: The estimated cost of gas over the next while is 2$/GJ, according to the futures market, and a price of 50$/tonne works out to 2.80$/GJ, means that the carbon pricing more than doubles the cost of gas. This is pointed out to be particularly unfair because heating is not something people can just "go without", and on a per GJ basis electricity is way more expensive.
I think a lot of people see this stuff and go "Oh my god, they're going to more than double my gas bill!". I just want to walk through our gas bill to show how this isn't the case.
Here's our most recent gas bill, where we were charged for
Charge | Price / GJ | Total |
---|---|---|
Natural Gas Charges | $0.82 | $4.83 |
Administration Charge | $7.00 | |
Transaction Fee | $1.00 | $5.92 |
Rider | $0.09 | |
Delivery Charges | $32.91 | |
Transmission Service Charge Rider | $5.69 | |
Interim Shortfall Rider (Fixed) | $1.56 | |
Interim Shortfall Rider (Variable/Demand) | $0.28 | |
Weather Adjustment Rider | -$0.48 | |
Property Tax | $1.60 | |
Franchise Fee Edmonton | $13.99 | |
Total | $77.06 |
Let's add a carbon tax of 50$/tonne. That adds a row that looks like this:
Charge | Price / GJ | Total |
---|---|---|
Hypothetical Carbon Tax, 50$/tonne | 2.81 | 16.61 |
Now. After all that, is Carbon Taxation on consumers a good idea? I'm honestly not sure. It's something I need to dig into more. Another post for another day.