Letter to Government: Removing the Carbon Tax from Electricity Bills and Reviewing the Output-Based Pricing System

Manufacturers are facing significant financial and operational pressure due to the current economic situation caused by the ongoing tariff dispute.

CME, together with the Association of Major Power Consumers in Ontario (AMPCO), Industrial Gas Users Association (IGUA) and the Ontario Mining Association (OMA), sent an urgent letter to the Government of Canada urging support to allow Ontario to remove the carbon tax from electricity bills without being in contravention of the federal backstop.

The removal of the industrial carbon tax applied to electricity generation from natural gas would save Ontario Class A consumers $1.67B over the next 5 years as well as fully removing the consumer carbon tax for residential electricity consumers.  It would also remove a significant counterintuitive disincentive for industries to shift their assets away from fossil fuels to electrification technologies.

Read the full letter below: