Electricity will become more affordable for ordinary Canadians

After reforms in home retrofits and food prices, the Canadian government is taking an ambitious step with a new energy affordability package. It entails four points.

Temporary suspension of fuel charges for heating oil deliveries

It comes into effect on November 9 in all provinces and territories where it currently applies — affecting approximately 1.1 million homes in total. The temporary suspension is for a three-year period.

The cost and use of heating oil varies depending on the size of the household, the severity of the weather, and the type of heating. It is estimated that, on average, this measure will save the average Atlantic Canadian household using 1,500 liters of heating oil per season about CA$ 261 this year.

The measure suggests that registered distributors will not pay fuel duty on light fuel that is supplied solely for use in providing heat to a home, building or similar structure. Details in the full text of the draft will appear on the website of the Department of Finance in the coming days.

Doubling of Rural Top-Up for Pollution Pricing Rebates

To support Canadians in rural communities, the government has announced a doubling of the rural premium from 10% to 20%. Rural residents will receive their first increased payment in April 2024, and the increase will apply in all subsequent years.

All direct revenue from the federal fuel surcharge is returned to the jurisdiction in which it was collected.To be eligible for the rural wage supplement, an individual must reside outside of a metropolitan area based on the most recent census published by Statistics Canada.

Heat pumps for low— and middle-income Canadians: two steps to make the transition

Nearly 30% of households in Atlantic Canada currently use heating oil to heat their homes, compared to 8% in the rest of Canada. That means Atlantic Canada accounts for nearly 25% of all Canadian homes heated with oil — even though the region is home to just 6% of Canada's total population.

Therefore, the government has announced that it will cover the cost of heat pump installations in Canada's Atlantic provinces and other provinces and territories that agree to support the implementation of an expanded federal program. This measure involves two steps:

• make the heat pump free for households with average income or below;

• Pay CA$ 250 upfront to middle-income or lower households using heating oil — to switch to heat pumps.

The federal government plans to continue to explore options to reduce the cost of electricity bills for all Canadians, as well as reduce emissions and combat climate change.