N.S. unveils how cap-and-trade system will affect cost of gas, electricity

Nova Scotians will payslightly more forgasoline, electricity, natural gas and heating oil over the next fouryears as a result of the province's new cap-and-trade system.

But the provincial governmentmaintained Tuesdaythose small hikesare just a fraction of the increases that would have resulted if Ottawa had imposed a carbon price on the province.

"We believe this plan is the best possible plan that could be achieved for Nova Scotians," Premier Stephen McNeil told reporters.

The Trudeau government approvedNova Scotia's cap-and-trade system and as a result won't be imposing a carbon-tax plan on the province the way it plans to on Ontario, New Brunswick, Saskatchewan and Manitoba provinces that don't have their ownclimate pricing plans that satisfy federal standards.

Avoiding a big jump at the pumps

The Nova Scotia government expects consumers to pay about a penny more a litre for gasoline and heating oil and about the same amount per cubic metre of natural gas.

The increase per kilowatt hour for electricity is0.19of a cent. That's a potential increase of about one percent on Nova Scotia Power bills starting next year.

Under the federal plan, according to the province, Nova Scotians would have faced steeper estimated increases between now and 2022, particularly forheating oil at 13.6 cents more a litre and gasoline at 11.6 cents more a litre.

Natural gas would've jumped to an estimated 9.7 cents per cubic metre whileelectricity would have costconsumers around 1.27cents more per kilowatt hour, the province said.

"NovaScotiansshould not be going to the pump and paying an 11-cent increase, hoping to receive that money back," said McNeil."We believe that money is better kept in the pockets of NovaScotians."

Rebates to other provinces

But the federal government has promised rebates to those who live in provinces covered by its plan to offset any price increase as a result ofcarbon pricing. Those chequeswill not be going out to provinces with their own systems, including Nova Scotia.

The province'sNDP leader, Gary Burrill, told reporters Nova Scotia's position was "misleading." The federal rebate program would leave the majority ofpeoplewith more money in their pockets than the provincial plan,he said.

Nova Scotia is imposing a cap on the amount of carbon emissions that can be generated. Companies that pollute more will have to purchase credits from industries with lower emissions in order to pay for exceeding their targets.

About two dozen of the province's largest polluters are, by law, expected to report on how much they emit and come up with ways to reduce those emissions over time.

Cap and trade

Last spring, the Nova Scotia government announced Western Climate Initiative Inc., or WCI, would run the emission trading system on behalf of the province, costing taxpayers $400,000 this year and roughly $300,000 every year after that.

The non-profit corporationis currently administering the carbon credit trading programs of Quebec, Ontario and Manitoba. California is also part of the system.

On its website, WCIsays it was created in 2011 to "provide administrative and technical services to support the implementation of state and provincial greenhouse gas emissions trading programs."

Unlike other jurisdictions, the credits generated in Nova Scotia can only be traded within the province. Most of those credits will be offered initially free of charge by the province.

Nova Scotia Power will get about 90 per centof its credits for free andfuel suppliers will get about 80 per centof their credits for free, according to the province.

Nova Scotians weighin

Though it's early days, the province's cap-and-trade program has already received mixed reaction from the public.

Some sayit's a small price to pay to fight climate change while others worry about the impact on low-income families.

"It would be great if we didn't have to pay the extra, but any new program comes with a cost," said CharlynnCox, who lives inNorth Sydney with her family.

"We still need to drive, we still need to take the kids to places, we still need to heat the house. We'll figure it out."

MurrayHannemof St. Ann's Bay said he won't be changing his driving habits thoughhe estimated the province's plan will likely cost him a few hundred dollars per year.

"I spend 50,000 kilometresa year travelling back and forth to work in Sydney. So I'm prepared to absorb that cost," he said. "We've got to do something about global warming, and it's a good start."

Louise Smith-MacDonald, a co-ordinatorwith the Every Woman's Centre in Sydney, said the cost of living is already a burden for some families. She said there needs to be support for people who can't afford even a small increase.

"The people I work with now are struggling to get heat. There are families who are buying jerrycans of furnace oil in order to keep their furnace going," she said.

"It's really just putting a higher price on the necessities of life, which is really, really cruel and difficult."