Your Alberta Blog

Your Alberta Blog

Turning down the heat on sub-meters

In the last few years, some landlords of large apartment buildings have started to use heat sub-meters to bill tenants. These sub-meters are connected directly to the hot water radiators in a tenant's suite and are intended to measure the heat from the hot water being used to heat the apartment.

However, there have been a lot of questions about the accuracy of these heat sub-meters and how they're used to bill tenants.

So, I've introduced a specific regulation that prevents landlords from using a heat sub-meter to bill their tenants unless the sub-meter is certified by Measurement Canada. Currently, no heat sub-meters are certified.

The new rules start Nov. 18 and apply both to existing heat sub-meters and new heat sub-meters. If a heat sub-meter does becomes certified in the future, landlords can only use it to bill tenants if they clearly disclose the sub-meter readings, the amount being charged for the energy, any extra fees, and the calculation methods.

This is good news for tenants. I certainly support the principle of a tenant paying for the actual energy he or she uses and being rewarded for conserving energy. But this only works if renters are confident that the devices used to measure their energy use are accurate and the amount they're being charged is clear and understandable.

That's exactly what this new regulation achieves.

More information on the new regulation is available here.

- Hon. Heather Klimchuk, Minister of Service Alberta

Get in our face(book)

I believe strongly that one of the best ways to protect consumers is ensuring that they know and understand their rights. Service Alberta investigates and enforces a number of consumer protection laws, but knowledge can be a very powerful tool against businesses that try to mislead or take advantage of people.

Service Alberta's website is packed with helpful information, including consumer tips and descriptions of Alberta's laws on a variety of topics, ranging from renting an apartment to shopping on the Internet. It's not enough, though, for us to post the information on our website; people need to know it's there. Our staff are always looking at new and better ways we can inform Albertans about their rights as consumers.

You might have noticed the Alberta government is starting to use social media more widely. This blog is only one example. I am excited to announce that Service Alberta just launched the Alberta Youth Consumer Champions page on Facebook at www.facebook.com/youthconsumerchampions.

The page is a place for young Albertans to find information about consumer issues they might encounter, such as using a credit card, buying their first car, renting an apartment and managing money. The page will highlight rotating topics, but people are encouraged to ask questions and discuss consumer matters. Service Alberta staff will answer their concerns and direct them to resources where they can find out more.

The nature of social media means that we can adapt the page to meet your needs. If a certain topic keeps arising, it lets us know we need to provide more information about it. We are also looking at how we can improve the way we alert consumers, for instance when a scam artist is known to be operating in a community. Social media might help us do that.

I would really appreciate hearing your thoughts on how we can use services such as Facebook, Youtube, Twitter and other social media to do a better job educating consumers. I also encourage you to join our Facebook page or tell a young Albertan about it.

- Hon. Heather Klimchuk

Front plates not on the table

There has been some discussion today about whether the Government of Alberta should bring back front licence plates for vehicles. This week, the Alberta Association of Chiefs of Police recommended that the government bring them back.

I appreciate the association's advice and I consider the association a partner in public safety. However, we have no plans to reintroduce front plates. Albertans were clear on this matter during consultations in the past two years. Eighty per cent of respondents to an online survey and 60 per cent of respondents in a public opinion poll were opposed to front plates.

We are planning to introduce a new reflective Alberta plate in the years ahead when funding becomes available, but we are not reconsidering our decision about front plates.

- Hon. Heather Klimchuk, Minister of Service Alberta

At your service

Last week I had the pleasure of meeting with Strathcona County Mayor Cathy Olesen and Fort Saskatchewan Mayor Jim Sheasgreen to launch BizPaL, a joint federal-provincial-municipal program, in their communities.

BizPaL is an online tool that lets aspiring business owners search for all the licences and permits they need from the federal, provincial and municipal governments. The federal government designed BizPaL, the Alberta government pays the annual licensing cost for the program, and municipal governments sign onto it. It's an excellent example of the different levels of government working across jurisdictions to provide better service. And it got me to thinking about how government delivers services to people.

When you're inside government, jurisdiction is important: which government is responsible for what areas? It sounds like a simple enough question, but governments have battled over the answer in court.

I'm not suggesting we don't need well-defined roles for the different levels of government. But I'm willing to bet the average person is more concerned that services are delivered effectively.

BizPaL is not the only example of governments working together to improve services.

Alberta recently announced a joint-initiative with B.C. that lets corporations register in both provinces by dealing only with their home province. And last December, we unveiled a form that allows new parents to register their child's birth with the Alberta government and at the same time apply to the federal government for a Social Insurance Number.

These might seem like small steps, but they take a lot of political and bureaucratic will behind the scenes. Changes like that can sometimes require rewriting legislation and regulations, as well as the willingness to work across jurisdictions.

I would like to hear what areas you think we can improve upon by working together. I believe there are more opportunities for our governments, as long as we focus on what matters most - improving services to people.

- Hon. Heather Klimchuk, Minister of Service Alberta

Thoughts on payday loans

No doubt you have noticed the rapid growth of the payday loan industry in Alberta. I've seen the amount of payday lenders in my neighbourhood explode in recent years - there are three just steps away from my Edmonton constituency office.

A recent count by Service Alberta puts their number at nearly 250 province-wide. I was surprised to learn that, despite common assumptions, payday loan customers range in income levels and social background.

Albertans use payday lenders for a just as wide a range of reasons. There is clearly a demand for this service and consumers need to understand what they are getting into when they sign up for a payday loan. For some people, it can become a vicious cycle of borrowing at high interest rates with little hope of getting out of debt.

I am helping to change that. Very soon, I will be introducing a regulation for the payday loan industry.

To help us come up with the appropriate regulation that provides stringent consumer protection while still being practical for businesses, we began consulting last year. Not only with payday lenders but, perhaps more importantly, the people who use their services. To our knowledge, no other North American jurisdiction has gone to the length of consulting directly with consumers in developing payday loan regulations and I believe our regulation will be stronger because of this.

Protecting consumers will involve much more than setting a maximum interest rate - various fees and insurance premiums can add to the overall cost of borrowing. We are also looking into fees charged to extend consumers a new loan to pay off existing ones, determining whether consumers should have a cooling-off period during which they can cancel the loan with no penalty, and whether payday lenders should be licensed by the provincial government.

Before I bring the regulation forward, I would like to hear your thoughts. The opinions of people like you will help us ensure the regulation is effective in protecting the interests of Alberta's consumers.

UPDATE: On June 3, I announced the details of the Alberta government's new payday loan regulation. It sets a limit on the total cost of borrowing, gives consumers a two day cooling-off period and bans rollovers and discounts. You can read the news release and the report on our consultations online.
- Hon. Heather Klimchuk