I have a return to written question 34-12(3), asked by Mr. Patterson on March 25, 1993, to the Minister of Personnel, regarding the timing of rental increases under the long-term staff housing strategy.
The Department of Personnel does not intend to contravene the Residential Tenancies Act when implementing the rent increases scheduled for August 1, 1993. Currently, most tenants, with the exception of those who moved in after January 1, 1993, are considered to be on a month-to-month lease. The month-to-month lease states that the rent includes a flat rate charge for utilities.
Under the Residential Tenancies Act month-to-month leases are considered to be in force for an indefinite period and can only be amended with mutual consent. In order for a tenant to pay electrical costs directly to the supplier, a revised lease must be entered into. It is recognized that some tenants may not wish to replace their existing leases. In such cases, the government must continue to pay the full costs, such tenants will have to pay a flat rate for electricity that is equivalent to the average community consumption at the rate the government pays. These rates are much higher than the residential rates which tenants would be subject to if they paid their own electrical costs.
The rent notices which will be in tenant's hands before May 1, 1993, will notify tenants of their new rent. They will be told that the rent includes a charge for electricity that is based on average community consumption at commercial rates. An information package will be included with the rent notice. The package will describe how tenants can reduce their costs by voluntarily paying for electricity directly to the supplier. They will be notified that this will require them to sign a new lease.
Tenants who chose to take advantage of the opportunity for direct payment will simply pay the full rent stated in the rent notice. Those who choose to pay directly and sign a new lease will do so through mutual agreement with the landlord. The flat rate for electrical charges will then be deducted from the overall rent. While the Residential Tenancies Act prohibits more than one increase to any unit in a 12 month period, there is nothing to prohibit an agreement between the landlord and the tenant to decrease the rent in this fashion at any time.