BC Drops Carbon Tax on Natural Gas

Summary#

• This bill changes how British Columbia’s carbon tax applies to natural gas starting April 1, 2025.

• Its main goal is to remove the carbon tax charge from customers’ natural gas bills and set up refunds or credits for any such charges paid on or after that date.

• Natural gas retailers (your gas utility) must refund or credit any carbon tax amount you paid for gas delivered on or after April 1, 2025, within 180 days of payment.

• If a retailer refunds or credits that amount to you, the retailer does not have to send that money to the government.

• You cannot also ask the government for a second refund for the same payment (no double refunds).

• The government can make temporary, retroactive rules to smooth the changeover and fix problems; these transition powers end by April 1, 2026.

• Administrative updates clarify how fuel inventories and collector licences are handled during the change.

What it means for you#

• Households and renters

  • If you use natural gas for home heating or hot water, you should not be charged carbon tax on gas delivered on or after April 1, 2025.
  • If you were charged that amount after April 1, 2025, your utility must give you a refund or a bill credit within 180 days of when you paid it. Watch your bills for a credit line.
  • You do not need to apply to the province if your utility issues the refund or credit; you also cannot claim a second refund from the government for the same charge.

• Small and large businesses

  • Businesses using natural gas should see the carbon tax line for gas delivered on or after April 1, 2025 removed, with refunds or credits if any amounts were charged.
  • Expect credits within 180 days of payment; check multiple accounts if you have several service locations.

• Landlords and strata managers

  • If you pay natural gas bills for a building, you should see refunds or credits for any carbon tax amounts charged on or after April 1, 2025. How savings are passed on to tenants depends on your agreements.

• Natural gas retailers and fuel distributors

  • You must refund or credit customers for any carbon tax amounts charged on natural gas delivered on or after April 1, 2025, within 180 days.
  • Amounts collected “as if” tax that are refunded do not need to be remitted to the government.
  • Other fuel inventory and licensing rules are adjusted to handle the transition and ensure required amounts are remitted where applicable.

• Everyone

  • The government can issue retroactive transition rules to fix gaps or issues that come up. These temporary powers end by April 1, 2026.

Expenses#

No publicly available information.

Proponents' View#

• This provides quick cost relief on heating bills for households and businesses that use natural gas.
• It helps with affordability during a period of high living costs.
• Refunding at the utility level is faster and simpler for customers than filing individual claims with the government.
• Temporary transition powers help prevent billing errors and ensure a smooth changeover.

Opponents' View#

• Removing the carbon tax from natural gas weakens the price signal meant to reduce emissions and could slow the shift to cleaner heating.
• The province may lose revenue that helps fund public services or climate programs.
• Retroactive rules and refunds can create uncertainty for utilities and customers and add administrative work.
• Treating natural gas differently from other fuels may be seen as unfair or confusing.