Isolated Posts and Government Housing Committee

Question #1

How are the fuel and utility charges calculated?

Answer #1

Appendix M of the IPGHD provides a rent calculation form to be used by departments. The form can be found at the following web site: http://www.tbs-sct.gc.ca/pubs_pol/hrpubs/ipgh-dpill/ipgh-pile-m-eng.asp

You can also find the relevant information in the IPGHD under Part VI, section 6.14.4. Question #4 provides for examples.

Question #2

Why has the base year for the "Fuel and Utility Charges" under Part VI (section 6.14) of the IPGHD changed?

Answer #2

The change was required to update the base year (1992 = 100) used in the formula to coincide to the new base year in the Consumer Price Index (CPI) set in May 2007 by Statistics Canada (2002 = 100).

Question #3

What do the changes in the formula represent for employees who occupy government housing?

Answer #3

(a) With this update, it will be easier for employees to understand the calculation of their fuel and utility charges which form part of their monthly rent; and;

(b) It also eliminates the requirement for departments to convert the January CPI for Water, Fuel and Electricity every year to 1991, to coincide with the old formula in the directive.

Question #4

Will the fuel and utility charges to employees increase as a result of this update?

Answer #4

Using the revised formula should not result in a significant change to employees' monthly rent.

Please see examples below calculating the monthly rent for August 2008 using the current formula versus the updated formula:

August 1, 2008 (sent to departments for April 1, 2008)

RENT CALCULATION PER IPGHD

1. Monthly CMHC Appraised Base Shelter Value (BSV) or:

1

$1000

Phased-In Base Shelter Value

2. Adjustments per IPGHD (if applicable)

A. Allocation of Accommodation
(subsection 6.7.1) ___ % of Block 1 =
Employee without dependants

2

 
 

B. Shared Self-Contained 
(subsections 6.7.4/6.7.5) ___% of Block 2 =

3

 

C. Loss of Privacy/Quiet Enjoyment 
(subsection 6.7.6) – 10% of Block 3 = minus $100
(not to exceed 50 % of BSV)

5

$900

 

3. Utilities (Fuel/Electricity/Water supplied @ 100 %)

A. Utility Factor (subsection 6.14.2)

0.96832
(subsection 6.14.2 IPGHD)

X

216.61(CPI after conversion **)

___________________________

= Utility Factor

100

2.10 *

 
 

B. Utility Charge
Size of unit 120 sq. m. x Utility Factor 2.10

6

$252.00

 

TOTAL MONTHLY RENT PER IPGHD            5+6 =

7

$1152

* Rounded to two (2) decimal points.

** as per TBS Information Bulletin of March 26, 2008

(please see the next table)

August 1, 2008 (using January 2008 CPI for Water, Fuel and Electricity with rebasing of unit factor to CPI 2002 = 100)

RENT CALCULATION PER IPGHD

1. Monthly CMHC Appraised Base Shelter Value (BSV) or:

1

$1000

Phased-In Base Shelter Value

2. Adjustments per IPGHD (if applicable)

A. Allocation of Accommodation
(subsection 6.7.1) ___ % of Block 1 =
Employee without dependants

2

 
 

B. Shared Self-Contained 
(subsections 6.7.4/6.7.5) ___% of Block 2 =

3

 

C. Loss of Privacy/Quiet Enjoyment 
(subsection 6.7.6) – 10% of Block 3 = minus $100
(not to exceed 50% of BSV)

5

$900

 

3. Utilities (Fuel/Electricity/Water supplied @ 100%)

A. Utility Factor (subsection 6.14.2)

1.6548
(subsection 6.14.2 IPGHD)

X

127.3

___________________________

= Utility Factor

100

2.11 *

 
 

B. Utility Charge
Size of unit 120 sq. m. x Utility Factor 2.11

6

$253.20

 

TOTAL MONTHLY RENT PER IPGHD 5+6 =

7

$1153

* Rounded to two (2) decimal points.

Question #5

Where can I find the "monthly" CPI for Water, Fuel and Electricity?

Answer #5

The monthly CPI can be found at the following web site:  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)