Premier Doug Ford says the Ontario government will remove the cost of the now-repealed cap-and-trade system from natural gas bills.
Ford says the change means families will save $80 a year and small businesses will save $285 annually.
He says the government has issued a directive to the Ontario Energy Board that will see the price of natural gas reduced by 3.3 cents per cubic metre starting on Oct. 1.
The Tory government cancelled cap and trade last month and has launched a court challenge of Ottawa's ability to impose a carbon tax on the province.
Shortly after winning the spring election, Ford said his government would provide clear rules for an ``orderly wind down'' of cap and trade.
The premier has said that cutting the carbon pricing system will help him lower gasoline prices for vehicles by 10 cents per litre.