Now that B.C. has scrapped its consumer carbon tax, an energy advocacy group has renewed its call to change incoming building code requirements for the electrification of home heating. Read More
The Energy Futures Institute argues future B.C. homeowners shouldn’t be barred from using natural gas after the carbon tax’s elimination.
The Energy Futures Institute argues future B.C. homeowners shouldn’t be barred from using natural gas after the carbon tax’s elimination.
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Now that B.C. has scrapped its consumer carbon tax, an energy advocacy group has renewed its call to change incoming building code requirements for the electrification of home heating.
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It’s called the B.C. Energy Step Code, which is aimed at removing fossil fuels for home heating in new home construction by 2030. It has already been adopted by 33 municipalities and First Nations in the province.
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A group called the Energy Futures Institute, however, argues that homeowners should still have the choice of natural gas, since scrapping the carbon tax has cut natural gas costs some 23 per cent — or $30 per month for the average Fortis B.C. customer — at the same time that the province is raising B.C. Hydro rates.
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“Per unit of energy, natural gas is now about one-third the cost of electricity,” said Barry Penner, chairman of the Energy Futures Institute.
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Penner argued that B.C. isn’t meeting emission-reduction targets and “we’re seeing a conflict between aspirations and what’s practical.”
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“Especially when people are facing a cost-of-living crisis,” Penner said. “I’m not saying people shouldn’t use electric heat pumps, but I think people should have a choice.”
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Penner said hybrid systems, which use electric heat pumps but have natural gas as a backup, would be a good option.
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However, the arguments that the Energy Futures Institute are making present “at best, an incomplete picture,” said Evan Pivnick, program manager for the climate research group Clean Energy Canada.
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Comparing per-unit costs between gas and electricity doesn’t account for the fact electricity is two to three times more efficient, Pivnick added. And it doesn’t account for fluctuations in natural gas prices.
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“This past year, we’ve seen natural gas take a 17 1/2 per cent annual average rate increase,” Pivnick said.
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Even without the carbon tax, Pivnick said electric heat pumps are still cheaper to run than gas furnaces.
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A researcher with Clean Energy Canada pointed to a cost-comparison calculator maintained by the Canadian Climate Institute that estimated that for a new Vancouver single-family home, electricity would cost $412 per year for a heat pump versus $549 for natural gas.
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Homeowners who switch to electricity also save on connection costs for natural gas, which add up to $154 per year, according to Clean Energy Canada’s Jana Elbrecht.
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“I think there’s no question that carbon pricing added costs to the consumption of natural gas, in part to help incentivize fuel shifting, and certainly its loss makes natural gas a little bit cheaper,” said Pivnick. “(But) about half of whatever possible savings is immediately lost due to that rate increase for natural gas.”
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