The hidden costs of Cap and Trade: What housing providers need to know
The Ontario Government will soon start its Cap and Trade initiative, which will reduce greenhouse gas (GHG) emissions by limiting how many tonnes of GHG a company can release into the atmosphere each year.
The Province is expected to generate revenue by placing financial penalties on companies that exceed the GHG limit. Revenue generated from this initiative will be reinvested into projects that reduce GHG pollution, including retrofit programs for the social housing sector.
This initiative also has the potential to financially impact many social housing providers. It is likely that natural gas companies will pass on the additional costs of financial penalties to their customers. This will be reflected in the delivery charge on your utility bill, and will not be itemized separately.
We recommend that housing providers consider budgeting for increased natural gas costs in 2017.
You can do this by:
- Contacting your utility provider to learn more about how Cap and Trade will impact your organization.
- Calculate an estimate of the financial increase you may see on next years’ bill using the following equation:
cubic metres used* x 0.033 x 12 months
*You can find information about your monthly gas usage (cubic metres used) on your utility bill.
Note: If you are participating in the ONPHA-ECNG Gas Program, we will provide more information on how this may affect you in the coming months.
ONPHA will also keep all members updates on how the Province’s Cap and Trade initiative may affect them.