What Cap and Trade will cost Condos
On January 1, 2017, Ontario begins a cap and trade program as part of changes intended to lower levels of greenhouse gas (GHG) emissions across the province. As part of the program, there will be costs related to the GHG emissions from natural gas used in homes and businesses. The government has indicated that the funds it collects through cap and trade will go to programs – like energy conservation – to reduce GHG emissions.
Cap and trade will affect condominiums significantly because condominiums are generally not large enough consumers to have access to the Cap and Trade pools of credits but they will be hit by the fees associated with GHG’s based on consumption.
Residential Condos can look forward to an increase of as much as 12% (based on a 3.35 cent per cubic meter new cost added to the existing cost of approximately 25 cents (including delivery)) in their gas bills effective January 2017. The actual percentage will vary depending on whether or not the gas supply is from systems gas or is contracted through a supplier but this new cost comes with some very unfair rules.
For example – Why can’t condominium management companies combine the gas consumption of their clients and participate in the cap and trade pool in an effort to lower the impact on their clients. A single condo may not have the volumes necessary to enter the Cap and Trade world but a group of condominiums could reach that threshold easily and save significant costs?
On November 15, 2016, Enbridge Gas Distribution submitted its cap and trade compliance plan to the Ontario Energy Board. On November 24, 2016, the Board approved the request for interim rates for the recovery of costs related to cap and trade. This allows us to have cap and trade rates in place for customers on January 1, 2017. Cap and trade charges will be included in the Delivery to You charge. A final cap and trade rate for 2017 will be determined in the future. The interim cap and trade rates below are also available on the Ontario Energy Board website.
Cap and Trade Compliance Plan Unit Rates
|Rate Class||Non-Large Final Emitter (cents/m3)||Large Final Emitter (cents/m3)|
IN SHORT – Condo owners – the days of 2% increases are disappearing if not already gone and it is not the Board or the manager that you should blame!