The Saskatchewan government passed a law to prevent SaskEnergy officials from facing penalties for not collecting the carbon tax, referred to as "carbon jail” by Dustin Duncan, minister of Crown corporations.The SaskEnergy (Carbon Tax Fairness for Families) Amendment Act was passed with unanimous support.The Act will “indemnify SaskEnergy and all current and former directors, officers, employees, agents, members, affiliates and other representatives from all damages, costs, charges and expenses, including legal fees, that the corporation or individual incurs with respect to any civil, criminal, administrative, investigative or other matter” related to not collecting the federal carbon tax starting on January 1, according to a Saskatchewan government press release.Premier Scott Moe announced on October 30 the government would instruct SaskEnergy, a Crown corporation, to stop collecting the carbon tax on natural gas beginning January 1 unless the federal government granted an exemption for this home heating source from the carbon tax.This decision was made in response to the federal government's choice to discontinue imposing the carbon tax on home heating oil. This change mainly benefits Atlantic Canada, where approximately 40% of homes still use heating oil.On October 31, Duncan stated the government was exploring options to shield SaskEnergy officials from potential repercussions or actions taken by the federal government for not collecting the carbon tax.“What I have shared privately with them, I can share publicly, is that it certainly will not be our intention to proceed in a manner that would put individuals at SaskEnergy, whether that be the officers or the board members, in legal jeopardy over this,” said Duncan at that time.“I guess if it comes to that point where somebody’s going to carbon jail, it likely will be me.”The bill amends The SaskEnergy Act to designate the Crown as Saskatchewan's exclusive registered natural gas distributor.In relation to the carbon tax, this places the provincial government as the sole entity subject to potential federal action.“These legislative amendments will give our government, and me as minister, the sole authority and responsibility for decisions regarding the collection and remittance of the federal carbon tax on SaskEnergy bills while also providing protection for SaskEnergy employees and board members,” said Duncan in the press release.“The passage of this legislation will enable our government to protect Saskatchewan families’ ability to afford to heat their homes this winter by removing the federal carbon tax from the natural gas bills of residential customers.”According to the Saskatchewan government, in 2024, eliminating the federal carbon tax from SaskEnergy bills is expected to result in savings of approximately $400 for the average family.On Thursday, the bill will receive royal assent during the last day of the fall legislative session.Also starting on January 1, the Saskatchewan government has instructed SaskPower to cease collecting the carbon tax on electric home heating.This adjustment is expected to benefit around 30,000 SaskPower customers. The government anticipates this change will lower power bills by an average of $21 per month.
