| News Releases
February 19, 2008
QUEBEC BUSINESS HIT WITH A 2% GREEN TAX ON NATURAL GAS
Could it happen in other provinces?
Toronto – Canadian businesses, including the already hard hit manufacturing sector, are yet again being slammed – this time in Quebec, by a green tax.
“Businesses should keep a close eye on what is happening in Quebec with this so-called ‘Green Fund,’ which looks more like a money grab than a tax,” said John Kiemele, senior vice president at En-Pro International, a leading consulting firm that closely follows commodity prices.
While it may not be the government of Québec charging customers directly, it is virtually the same because it is the Régie de l’Énergie that approves energy tolls and the Régie de l’Énergie has allowed Gaz Métropolitain, the province’s regulated natural gas distributor, to apply a Green Fund charge to bills starting January 2008. Alternatively, Gaz Metro is required to pay the Québec government a staggering $38 million per year. Gaz Metro has already remitted its first contribution of $9.5 million to the Québec government.
A statement on the company’s website says, “Gaz Métro understands the reaction this new contribution may cause among its customers.”
“Two percent may not sound like a lot, but for businesses in the manufacturing sector – like those using more than $10,000 per year on natural gas, it’s an extra cost in the face of already hard times in certain sectors,” added Kiemele.
As Québec strives to meet its part of the seemingly doomed Kyoto Protocol, it is the already struggling manufacturing industry that is forced to pay the price. Industry is expected to compete with other provinces and the rest of the world – more importantly the United States, and it’s already clear the U.S. has flatly refused to be part of the unrealistic Kyoto commitment.
CONTACT
John Kiemele
Senior Vice President
(905) 686-6400 ext. 116
Toll-Free 1-800-686-6449
Pierre Dugas
Conseiller en Coût d’Énergie et Denrées
Tél : (450) 753-7906
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EN-PRO INTERNATIONAL is a leading North American consulting firm specializing in the areas of electricity, natural gas, petroleum distillates (diesel, propane, heating, gasoline, etc.), lubricants, industrial gases (medical gases, bottled, bulk, pipeline, on-site plant), welding supplies, chemicals, and waste disposal services (hazardous and non-hazardous). We offer an objective and unbiased look at the markets in the complicated world of commodities. En-Pro does not buy or sell industrial products, and is not connected in any way to suppliers or marketers.
For radio, television or print interviews or background information, please contact John Kiemele jkiemele@en-pro.com or Susan Ponting sponting@en-pro.com
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