Consumer Price Index for Utilities - Isolated Posts and Government Housing Directive (IPGHD) - April 2010

Date:

To: Functional Heads of Human Resources, Finance and Administration

CC: Federal Regional Councils; Designated Departmental Coordinators for the IPGHD

The purpose of this notice is to provide departments and agencies the Consumer Price Index (CPI) for purposes of calculating the rental charge increases for employees who occupy Crown owned/leased housing .

The methodology (appended) agreed to by the National Joint Council IPGH Committee in 2009.

Note: The monthly CPI Movement can be found on the following web address: http://www.statcan.gc.ca/pub/62-001-x/62-001-x2010001-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 CPI Index.

The CPI of 127.2 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 ) of the rental charge increases which come into effect on .

As a reminder you will find below an extract of the directive. (section 6.14). The 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 housing 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 )

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 )

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 )

  1. 50 per cent for fuel,
  2. 40 per cent for electricity, and
  3. 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 )

Note:

The monthly CPI can be found at the following website: http://www.statcan.gc.ca/pub/62-001-x/62-001-x2010001-eng.htm

Statistics Canada. 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 )

Example:

For a unit which is 120 square meters (approximately 1,300 square feet). (revised )

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 )

Utility Charge

Size of unit 120 sq. m. multiplied by utility factor of $2.11 to equal $253.20 utility charge per month. (revised )

6.14.5 Where government-owned living accommodation is not individually metered: (revised )

  1. the department will pay to the supplier the actual costs incurred for utilities; and (revised )
  2. will charge the occupant the formula rate indicated above. (revised February 19, 2009)

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 February 19, 2009)


Appendix M

Calculation of Rent for Government Housing
EMPLOYEE NAME:
Unit#: Address:
Per the Isolated Post and Government Housing Directive (IPGHD)
DEPENDANTS:
Name of Spouse/Common-Law Partner:
Name(s) and age(s) of Dependant(s):
RENT CALCULATION PER IP GHD
1. Monthly CMHC Appraised Base Shelter Value (BSV) or: 1
Phased-In Base Shelter Value
2. Adjustments per IPGHD (if applicable)
A. Allocation of Accommodation
(Sec. 6.7.1) ___ % of Block 1 =
Employee without dependants
2
B. Shared Self-Contained
(Sec.. 6.7.4/6.7.5) ___% of Block 2 =
3
C. Loss of Privacy/Quiet Enjoym't
(Sec. 6.7.6) ___% of Block 3 = 4_______ 3 - 4 =
(Not to exceed 50 % of BSV)
5
3. Utilities (Fuel/Electricity/Water supplied @ 100 %)
A. Utility Factor (Sec. 6.14.2)
$1.6548 X January CPI (Sec. 6.14.4 IPGHD)
(http://www.statcan.gc.ca/pub/62-
001-x/62-001-x2010001-eng.htm)

____________________ = Utility Factor
100

B. Utility Charge
size of unit ___ sq. m. x Utility Factor _____
6
TOTAL MONTHLY RENT PER IPGHD 5+6 7

Calculation Sheet Prepared by:

________________________
Name (Please print)

_____________________
Signature

_________________
Date

The rental period is to commence on the:

_____________________________

Occupant:

_________________________
Name (Please print)

_____________________
Signature

_________________
Date

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