Wynne says cap and trade plan will add about 4.3 cents a litre to gas prices
New clean energy policy will also tack $5 a month onto natural gas bills
TORONTO—Ontario Premier Kathleen Wynne says her government’s cap-and-trade plan will add about 4.3 cents a litre to the price of gasoline and about $5 a month to natural gas bills.
However, Wynne says electricity consumers will be “protected” against rate hikes because of cap-and-trade, and could even see their rates go down. She says the government will use revenue raised from auctions of carbon emissions to industries to keep electricity rates in check.
Wynne says people have to realize the cost of doing nothing to combat climate change will be even greater than putting a price on carbon.
More details of the cap-and-trade plan are expected to be revealed in Thursday’s Ontario budget.
It is scheduled to take effect next January and the government expects to raise about $1.3 billion in its first full year of operation, money that will be devoted to lowering greenhouse gas emissions.