Beginning May 1st, the provincial Technical Standards and Safety Authority (TSSA) will introduce a new billing model for annual elevator licenses. The new pre-paid flat fee structure will introduce fee increases for its oversight services in tandem with bundling some costs that were previously invoiced separately.
The new “outcome-based” approach of charging fees is meant to be predictable and efficient so customers can budget with certainty, reduce the quantity of invoices sent to customers and eliminate concerns about billing surprises, and is better scoped for smaller businesses and operators of simple devices.
The TSSA has used the current fee-for-service model since 1997. Although fees are usually re-evaluated every few years, TSSA has not implemented a fee increase since 2013 across all program areas. Therefore, the TSSA deemed it necessary to adjust fees in order to represent the costs of supplying public safety services more accurately in each program area, support initiatives that incentivize excellent safety performance, and make available investments in new and existing safety resources.
New Fee Structure Spotlight
- The new flat fee rates are based on a five-year historical average of inspection hours for each category of device, business, or facility type.
- There are three categories of license costs in the billing formula:
- $250 for elevators serving up to three floors;
- $330 for elevators serving four to 20 floors; and
- $400 for elevators serving 21+ floors.
Now, it may look as if the license fee for elevators that service four or five floors has increased by triple, from $110 to $330. However, this rate now includes both the cost of the periodic inspection plus a one-hour follow-up inspection. For follow-up inspections that must go beyond the allotted one-hour time frame, additional charges will apply.
- Customers will be charged a fixed annual fee for licenses, permits and registrations scaled by category that will include all periodic inspections and one follow-up inspection (where applicable).
- There will no longer be invoices for routine periodic inspections nor for the first follow-up inspection if one is required. Routine inspections are now included in the Authorization fee.
- Additional fees will apply when customers require repeated follow-up inspections due to non-compliance.
- Prepaid flat or minimum fee includes engineering reviews, plus associated inspections (where applicable).
Lastly, fees for exams and certificate holders, such as mechanics and technicians, will continue to be billed in the same way.
Building owners and managers with elevator license renewals due in early May should already be aware of the new flat rates as the TSSA stated that customers have received two previous notices of the new billing model — via email on Nov. 20, 2020 and in a letter mailed out on Jan. 29, 2021.
There is information pertaining to the new rate structure posted on the TSSA’s website. You can also find more information in TSSA’s Frequently Asked Questions (FAQ) document here.