NEU Rates for Customers

The NEU system is owned and operated by the City of Vancouver and managed by the City’s Engineering Department. Strata corporations and building owners are billed on a monthly basis, with rates split into two components:

Fixed Capacity Levy: This is based on the floor area of the customer building, and is designed to recover the NEU’s fixed costs associated with providing energy services. These costs include NEU infrastructure development costs, staffing and other fixed operating costs.
Energy Use Charge: This is based on the amount of metered energy consumed by a customer building, and recovers the NEU’s variable costs associated with providing energy services. This includes the NEU’s cost of purchasing gas and electricity for its operations.

Individual strata corporations are responsible for determining how to apportion NEU costs among individual unit owners. Some buildings incorporate sub-metering of individual units, and bill based on measured energy consumption. Other buildings may apportion NEU charges based on the floor area of individual units. The costs associated with heating building common areas and building ventilation air may or may not be included in strata re-allocations.

The NEU rates have been designed to be cost competitive with traditional forms of heating. In the long term rates are projected to increase on average by approximately 1.15% above inflation each year, which is lower than the rate of increase projected for BC Hydro. Rates are reviewed by an independent Expert Rate Review Panel to ensure fairness to customers, and approved by City Council annually.

For more detailed information on NEU rates, please refer to the 2012 NEU Rates Report.

Billing inquiries may be directed to utilities@vancouver.ca or 604.873.7644.