Frequently Asked Questions — An Act to Amend the Electricity and Gas Inspection Act and the Weights and Measures Act

Table of Contents

Q1. Why did the government amend the Electricity and Gas Inspection Act and the Weights and Measures Act?

Business and consumer confidence in the accuracy of goods bought and sold on the basis of measurement is key to an efficient and fair Canadian marketplace.

It is estimated that each year, due to inaccurate measurement, Canadian consumers receive millions of dollars less than what they pay for at the gas pumps. That’s why the Government of Canada is taking concrete action to protect consumers from paying more than they should at the gas station and other places where goods are measured.

A legislative review of the Weights and Measures Act and the Gas and Inspection Act was announced in the 2006–07 Industry Canada Report on Plans and Priorities. Accordingly, Measurement Canada began stakeholder consultations on a broad range of proposed reforms to the Acts in 2006. During these consultations, stakeholders recommended mandatory inspection frequencies as a means to improve measurement accuracy.

Q2. What does the Act to Amend the Electricity and Gas Inspection Act and the Weights and Measures Act mean for Canadian consumers?

The Act to Amend the Electricity and Gas Inspection Act and the Weights and Measures Act means Canadian consumers will be protected against unfair retailer practices and can be more confident in everyday transactions that involve measurement.

The amendments will increase business accountability for the accuracy of gas pumps and other measuring devices, and the introduction of mandatory inspection frequencies will contribute to an efficient and fair marketplace for Canadians. Data shows devices inspected at regular intervals measure more accurately.

Increased court-imposed fines of $10 000 for minor offences and up to $50 000 for repeat offences and the introduction of administrative monetary penalties (AMPs) will ensure appropriate deterrence against measurement inaccuracy.

Q3. What do these amendments mean for retailers?

The Act to Amend the Electricity and Gas Inspection Act and the Weights and Measures Act will make businesses more accountable for the accuracy of their pumps and other measuring devices by requiring retailers to have the accuracy of their devices certified at regular intervals.

Allowing the use of private sector authorized service providers (ASPs) to perform these mandatory inspections will generate opportunities for the growth of small businesses. It will offer businesses a choice of service provider in addition to allowing flexibility in scheduling inspections.

The introduction of mandatory inspection frequencies may result in minor additional costs for businesses. In many cases, the cost will be incremental as ASPs could also service and repair devices at the time of inspection.

Fees for inspection services will be determined by market forces, ensuring there is competition in the marketplace and retailers would be charged fairly for these services.

Q4. How do the amendments compare to those of other countries?

The Act to Amend the Electricity and Gas Inspection Act and the Weights and Measures Act modernizes the laws governing trade measurement and aligns Canada’s fines for inaccurate measurement with those of most industrialized countries.

Mandatory inspection frequencies are used by the majority of industrialized nations (e.g. France, Germany and most U.S. states), and, in Canada, currently exist for electricity and natural gas meters under the Electricity and Gas Inspection Act.

Q5. Why is a two-tiered approach to penalties for offences introduced?

A two-tiered approach will allow the government to apply an enforcement strategy appropriate to the severity of the offence — administrative monetary penalties for relatively minor offences, and prosecution for serious or repeated offences.

Prior to the amendments, prosecution was the only means available to levy fines for non-compliance. Prosecution is not always the most appropriate mechanism for punishing relatively minor contraventions as it leads to a criminal record, a punishment often not in line with the severity of the offence.

Administrative Monetary Penalties are currently used by several federal departments and agencies, including the Canada Food Inspection Agency, Transport Canada and the Competition Bureau.

Q6. Why were fines increased?

The rising costs of gasoline, electricity, food and other measured products are having a growing impact on Canadians’ standard of living and the fines previously imposed no longer provided appropriate deterrence against inaccurate measurement.

Increased fines and a new fine for repeat offences will improve device measurement accuracy by serving as an appropriate deterrent against measurement inaccuracy.

Q7. If private sector authorized service providers will perform mandatory inspections, what will Measurement Canada be responsible for? Will it still perform inspections?

Measurement Canada inspectors will continue to assess marketplace performance through independent inspections, respond to complaints of suspected inaccurate measurement and audit the performance of authorized service providers to make sure they are doing their jobs correctly.

Measurement Canada inspectors will be solely responsible for taking enforcement actions when offences are identified.

Q8. How will Measurement Canada certify and oversee authorized service providers (ASPs)?

All ASPs must complete Measurement Canada training and meet strict program performance criteria before they can certify measuring devices.

Measurement Canada annually evaluates all ASPs to ensure they are carrying out their duties accurately. If they are not, their authority to certify devices can be suspended or revoked.

Q9. Will these mandatory inspections increase costs for small business?

Measurement Canada is committed to ensuring that both businesses and consumers are protected from measurement inaccuracies.

Mandatory inspections provide "a level playing field", protecting small businesses from retailers who may gain competitive advantage through measurement inaccuracy. For example, mandatory inspections will deter a retailer from deliberately altering their device to deliver inaccurate measurement in order to be able to charge a lower price and gain a competitive advantage.

Introduction of mandatory inspection frequencies may result in minor additional costs for businesses, which will be responsible to pay for measurement device inspections. These costs would be incurred every two years in many sectors.

This will be a marginal price increase for responsible organizations that have service contracts in place for maintenance. Fees will be determined by market forces, ensuring competition in the marketplace and retailers are charged fairly for these services.

In many cases, the cost will be incremental as ASPs could also service and repair devices at the time of inspection.

Q10. Has Measurement Canada consulted with stakeholders prior to amending the Acts?

Measurement Canada has consulted broadly with stakeholders in a variety of sectors including the retail food, retail and downstream petroleum, fishing and the grain and field crop sectors.

A legislative review of the Weights and Measures Act and the Electricity and Gas Inspection Act was announced in the 2006–07 Industry Canada Report on Plans and Priorities. Accordingly, Measurement Canada began stakeholder consultations on a broad range of proposed reforms to the Acts in 2006.

Consulted stakeholders recommended mandatory inspection frequencies as a means to improve measurement accuracy.

Q11. Do mandatory inspection frequencies only apply to gas pump inspections?

Mandatory inspection frequencies will be introduced using a phased-in approach for measuring devices used in eight trade sectors:

  • retail petroleum;
  • downstream (or wholesale) petroleum;
  • dairy;
  • retail food;
  • fishing;
  • logging;
  • grains and field crops; and
  • mining.

Other sectors could be added in the future.

Q12. How much will this improve accuracy?

It is difficult to quantify how much these measures will improve measurement accuracy. However, the benefit to the marketplace will be the greater likelihood of problems being detected and corrected. As the numbers of inspections are being increased, these amendments will save consumers millions annually.

Q13. Will this bring us up to 100 percent accuracy?

One hundred percent accuracy is likely not attainable due the nature of measuring devices, differences in usage and the fact that they are used in extreme environments. However, Measurement Canada data shows that, since the early 1980s, measurement compliance rates have been slipping. Increasing the number of inspections will raise compliance rates. Additional inspections will allow Measurement Canada to detect measurement issues earlier and correct them, either by having ASPs repair the devices or through the use of a graduated enforcement approach.

Q14. What can consumers do if they suspect they have received inaccurate measurement?

The Government of Canada takes measurement accuracy seriously. If consumers suspect they have received inaccurate measurement and have been unable to resolve the matter with the retailer, we invite them to contact their local Measurement Canada office.