The jury is still out on how the Ontario government's new climate change plan will affect natural gas usage in the province.
Union Gas spokesperson Andrea Stass says they're wary of the province's plan to make sure all new homes have net-zero carbon emissions by 2030.
"Although natural gas remains as a choice for home heating, it's uncertain what net-zero carbon means and what the cost implications could be for Ontario homeowners," says Stass. "We're going to continue to try to seek clarity from the government on what that means for natural gas in the longer term."
On the other hand, the province will also be investing up to $170-million over four years to provide incentives for companies to switch over to natural gas-powered trucks. That's a plan Union Gas can get behind.
"That's good news," says Stass. "Natural gas produces 25% fewer emissions than diesel... and it can reduce costs because natural gas is less expensive than diesel."
Stass says the climate change plan will come at a cost to homeowners who use natural gas for heating, though. New cap and trade legislation means that starting in 2017, heating your home with natural gas will cost you about $5 more per month.
"Union Gas customers will see a charge for cap and trade on their bill," says Stass. "We will be charging them for cap and trade and then flowing those revenues over to the government."
Provincial officials say they will use some of the money collected from those cap and trade charges to invest up to $100-million into providing support to encourage the use of cleaner, renewable natural gas in industrial, transportation and buildings sectors.
