UPDATE – ON: After months of CPA voicing concern, TSSA agrees to review fee structure for propane industry
As members are aware, the Technical Standards and Safety Authority’s (TSSA) new business model fee structure for regulated industries that became effective on May 1, 2021 represents significantly higher costs for many propane businesses.
Propane operators report the new regime represents 20-40 % fee increases; with some in the 90-125 % range.
The CPA has been engaged in the process since the fee change consultation began, however the TSSA was not fully open with their consultation process and when TSSA clients began receiving invoices reflecting the new fee structure earlier this year, the CPA has been seeking revision to the model to better reflect the regulator’s stated principles and reduce the burden and costs to members with the TSSA and government Ministers.
When the CPA and some members met with the TSSA on August 20, 2021 to discuss the need for redress on this issue, the following points were raised by President and CEO, Nathalie St-Pierre, and industry stakeholders:
- the model is flawed and not based on actual propane facility data held by the TSSA;
- the TSSA’s retroactive fee billing is unfair;
- the fee structure represents 20-125 % cost increases for many Ontario propane providers;
- it costs the propane sector much more than other fuels;
- the costs are not reflective of province’s bulk plant site configurations or of the industry’s make up;
- it could result in an increase in sites due to the severing of sites to reduce fee costs;
- this could result in the closure of smaller facilities due to the loss of profitability caused by higher fees, which would impact regional and rural recreational offerings and economic recovery from the pandemic; and
- may represent charges for services, such as inspections, the TSSA may not conduct in some cases.
In response, TSSA Vice-President, Alexandra Campbell committed to reviewing propane sector site data and providing a revised categorization model reflecting industry input. She cautioned however that any changes to the fee structure would not be reflected until the May 2022 billing cycle.
CPA members will continue to be updated on progress made with respect to this file.