Treasury Board of Canada Secretariat
www.tbs-sct.gc.ca
Human Resources Information Notices
Consumer Price Index for Utilities - Isolated Posts and Government Housing Directive (IPGHD)
| DATE: | March 2nd, 2009 |
| TO: | Functional Heads of Human Resources, Finance and Administration |
| CC: | Federal Regional Councils |
| Designated Departmental Coordinators for the IPGHD |
|
| SUBJECT: | Consumer Price Index for Utilities – Isolated Posts and Government Housing Directive (IPGHD) |
The purpose of this notice is to provide departments and agencies with the revised methodology for fuel and utilities charges and the January 2009 Consumer Price Index (CPI) for purposes of calculating the rental charge increases for employees who occupy Crown owned/leased housing .
The methodology (appended) was reviewed and agreed to by the National Joint Council IPGH Committee. It has been simplified and will be published in the directive shortly. Section 6.14 now states: "The occupant will be charged for utilities on the basis of living space at $1.6548 per m2 multiplied by the Consumer Price Index (CPI 2002 = 100) for utilities as established by Statistics Canada for January of each year
Note: The monthly CPI Movement can be found on the following web address: http://www.statcan.gc.ca/pub/62-001-x/62-001-x2009001-eng.htm
Please select Tables, Table 4-2 Shelter (click on the green button HTML to be able to view WATER, FUEL AND ELECTRICITY for Canada). For purposes of this exercise, one would choose the January 2009 CPI Index.
The CPI of 132.7 should be used in the calculation of the utility factor.
Please ensure that this notice is provided to those responsible for calculating the rental charge increases. Employees must receive a three month notification (by April 1, 2009) of the rental charge increases which come into effect on August 1, 2009.The revised Appendix M is also appended to assist you with the calculation of the rental charges.
Note:Section 6.14 and Appendix M will be published shortly in the IPGHD.
Part VI Government Housing
6.14 Fuel and Utility Charges
6.14.1 To the extent practicable, government-owned living accommodation shall
be individually metered for utilities (heat, electricity and water) with the
occupant paying consumption charges directly to the supplier (see Section 1.9).
When it is not feasible to individually meter government-owned self-contained
living accommodation, the Government of Canada is the supplier.
(revised August 1, 2008)
6.14.2 The occupant will be charged for utilities on the basis of living
space at $1.6548 per m2 multiplied by the Consumer Price Index (CPI 2002 = 100)
for utilities as established by Statistics Canada for January of each year.
(revised August 1, 2008)
6.14.3 Where all of the utilities are not provided, the charge to the occupant shall be a percentage of the amount calculated as follows: (revised August 1, 2008)
- 50 per cent for fuel,
- 40 per cent for electricity, and
- 10 per cent for water.
6.14.4 As an example, if we were to use the 2008
January CPI of 127.3 for Water, Fuel and Electricity, the following formula
would be used to complete the calculation for the fuel and utilities charges.
(revised August 1, 2008)
Note: The monthly CPI can be found at the following website:
http://www.statcan.gc.ca/pub/62-001-x/62-001-x2009001-eng.htm
Please select Table 4-2 Shelter (click on the green button HTML to be able to
view WATER, FUEL AND ELECTRICITY for Canada). For purposes of this exercise,
one would choose the January CPI Index.
(revised August 1, 2008)
Example: For a unit which is 120 square meters (approximately
1,300 square feet).
(revised August 1, 2008)
Calculation
Utility Factor (for example purposes only)
$1.6548 multiplied by 127.3 (January CPI) then divided by 100 – to equal $2.11
(utility factor). (revised August 1, 2008)
Utility Charge
Size of unit 120 sq. m. multiplied by utility factor of $2.11 to equal $253.20
utility charge per month. (revised August 1, 2008)
6.14.5 Where government-owned living accommodation is not individually metered: (revised August 1, 2008)
- the department will pay to the supplier the actual costs incurred for utilities; and (revised August 1, 2008)
- will charge the occupant the formula rate indicated above. (revised August 1, 2008)
6.14.6 This practice will continue until the units have been adequately retrofitted. Nevertheless, the occupant is responsible for ensuring that consumption is kept to a minimum consistent with environmental conditions and normal comfort levels. (revised August 1, 2008)
Appendix M
Calculation of Rent for Government Housing
| EMPLOYEE NAME : | ||
| Unit #: |
Address : |
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| Per the Isolated Post and Government Housing Directive (IPGHD) | ||
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DEPENDANTS : |
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| Name of Spouse/Common-Law Partner: |
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| Name(s) and age(s) of Dependant(s): |
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| RENT CALCULATION PER IP GHD | ||||||||||||
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1. Monthly CMHC Appraised Base Shelter Value (BSV) or: |
1 |
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Phased-In Base Shelter Value |
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2. Adjustments per IPGHD (if applicable) |
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A. Allocation of Accommodation |
2 |
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B. Shared Self-Contained |
3 |
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C. Loss of Privacy/Quiet Enjoym't |
5 |
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3. Utilities (Fuel/Electricity/Water supplied @ 100 %) |
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A. Utility Factor (Sec. 6.14.2) |
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B. Utility Charge |
6 |
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| TOTAL MONTHLY RENT PER IPGHD 5+6= |
7 |
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Calculation Sheet Prepared by:
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________________________ |
_____________________ |
_________________ |
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The rental period is to commence on the : |
_____________________________ |
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Occupant:
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_________________________ |
_____________________ |
_________________ |
