Canada Energy Regulator – 2019–20 Departmental Results Report – Analysis of trends in spending and human resources

Actual expenditures

Departmental spending trend graph

The following graph presents planned (voted and statutory spending) over time.

Departmental spending trend graph

Graphic description

Departmental Spending 2017–18 to 2022–23

This bar chart shows the Canada Energy Regulator’s six-year (voted and statutory) spending trend.

2017–18 Statutory (in thousands): 8,330
2017–18 Voted (in thousands): 85,503
2017–18 Total (in thousands): 93,833

2018–19 Statutory (in thousands): 23,630
2018–19 Voted (in thousands): 84,476
2018–19 Total (in thousands): 108,106

2019–20 Statutory (in thousands): 10,397
2019–20 Voted (in thousands): 87,600
2019–20 Total (in thousands): 97,997

2020–21 Statutory (in thousands): 8,222
2020–21 Voted (in thousands): 71,327
2020–21 Total (in thousands): 79,549

2021–22 Statutory (in thousands): 8,316
2021–22 Voted (in thousands): 71,722
2021–22 Total (in thousand)s: 80,038

2022–23 Statutory (in thousands): 7,759
2022–23 Voted (in thousands): 67,651
2022–23 Total (in thousands): 75,410

The CER and its predecessor, the NEB, are funded through Parliamentary appropriations with approximately 99% of its costs recovered by the Government of Canada from the industry that the CER, and formerly the NEB, regulates. All collections from cost recovery invoices are deposited to the account the Receiver General for Canada and credited to the Consolidated Revenue Fund.

Pipeline and power line companies that hold authorizations under the Canadian Energy Regulator Act are subject to cost recovery. Applications before the CER for new facilities are not subject to cost recovery until the facility is placed into service, unless the company does not have any prior facilities regulated by the CER in which case a one-time levy is assessed following the authorization of construction.

Cost recovery is carried out on a calendar year basis.

Budgetary performance summary for Core Responsibilities and Internal ServicesTable Note a (dollars)

Budgetary performance summary for Core Responsibilities and Internal Services (dollars)
Core responsibilities and Internal Services 2019–20
Main Estimates
2019–20
Planned spending
2020–21
Planned spending
2021–22
Planned spending
2019–20
Total authorities
available for use
2019–20
Actual spending
(authorities used)
2018–19
Actual spending
(authorities used)
2017–18
Actual spending
(authorities used)
Energy Adjudication 22,763,624 21,168,557 19,870,310 20,094,039 28,634,190 21,550,144 23,372,250 24,293,849
Safety and Environment Oversight 22,231,657 29,865,211 17,875,000 18,449,404 27,450,097 24,588,408 22,648,545 23,004,346
Energy Information 9,388,697 6,031,164 4,459,939 4,554,897 9,990,519 9,235,424 9,554,137 10,444,458
Engagement 5,088,269 9,549,898 7,898,891 7,843,943 6,875,335 7,611,046 5,811,773 4,898,235
Budget Implementation – unallocated authorities 3,670,000Table Note b
Subtotal 63,142,247 66,614,830 50,104,140 50,942,283 72,950,141 62,985,022 61,386,705 62,640,888
Internal Services 32,212,504 25,069,921 29,445,190 29,096,036 37,023, 195 35,011,968 32,009,262 31,192,102
Internal Services
– GIC Remission Levy
14,710,000
Total 95,354,751 91,684,751 79,549,330 80,038,319 109,973,336 97,996,990 108,105,967 93,832,990

Variance between 2017–18 Actual spending and 2018–19 Actual spending

The NEB 2018–19 actual spending is $14.27 million higher than the 2017–18 actual spending primarily due to Governor in Council’s remission of levy to Northern Gateway Pipelines Limited Partnership that occurred in 2018–19.

Variance between 2018–19 Actual spending and 2019–20 Actual spending

A decrease of $10.11 million from 2018–19 actual spending to 2019–20 actual spending is primarily due to:

  • a decrease of $14.71 million related to a levy remission to Northern Gateway Pipelines Limited Partnership;
  • a decrease of $4.51 million related to TMX Project reconsideration;
  • a net decrease of $2.03 million related to compensation adjustments made to terms and conditions of service or employment of the federal public administration;
  • an increase of $2.35 million related to Budget 2019 CER transition cost; and,
  • an increase of $9.19 million mainly related to Budget 2018 transition to new impact assessment and regulatory processes.

Variance between 2020–21 Planned spending and 2019–20 Main Estimates

The 2020–21 planned spending is $15.81 million lower than the 2019–20 Main Estimates primarily due to:

  • a decrease of $3.67 million related to Budget 2019 CER transition cost;
  • a decrease of $0.22 million related to TMX Project reconsideration;
  • a decrease of $5.25 million related to Budget 2017 pipeline safety lifecycle oversight;
  • a decrease of $0.58 million related to Budget 2017 communication and access to information capacity;
  • a decrease of $13.29 million related to Budget 2015 energy transportation infrastructure;
  • a decrease of $0.34 million related to Budget 2017 indigenous advisory and monitoring committee; and,
  • an increase of $7.54 million related to collective agreement renewal.

Variance between 2020–21 Planned spending and 2019–20 Actual spendingFootnote 37

The 2020–21 planned spending is $18.45 million lower than the 2019–20 actual spending primarily due to:

  • a decrease of $13.29 million related to Budget 2015 energy transportation infrastructure;
  • a decrease of $5.83 million related to Budget 2017 pipeline safety lifecycle oversight and communication and access to information capacity;
  • a decrease of $2.35 million related to Budget 2019 CER transition cost;
  • a decrease of $0.87 million related to Budget 2018 transition to new impact assessment and regulatory processes;
  • a decrease of $2.18 million related to employee benefit plan; and,
  • a net increase of $6.07 million mainly related to compensation adjustments made to terms and conditions of service or employment of the federal public administration.

Variance between 2019–20 Total authorities available for use and 2019–20 Main Estimates

The 2019–20 total authorities available for use is $14.62 million higher than the 2019–20 Main Estimates primarily due to:

  • an increase of $3.15 million related to operating budget carry forward from 2018–19 to 2019–20;
  • an increase of $7.61 million related to compensation allocation as a result of adjustments made to terms and conditions of service or employment of the federal public administration;
  • an increase of $2.61 million mainly related to Budget 2018 re-profiling funding to establish the organization; and,
  • an increase of $1.25 million related to 2019–20 employee benefit pension.

Variance between 2019–20 Total authorities available for use and 2019–20 Actual Spending

The 2019–20 actual spending is $11.97 million lower than the 2019–20 total authorities is primarily due to:

  • a decrease of $1.32 million related to Budget 2019 CER transition cost;
  • a decrease of $3.71 million related to Budget 2018 transition to new impact assessment and regulatory processes;
  • a decrease of $5.34 million related to compensation allocation as a result of adjustments made to terms and conditions of service or employment of the federal public administration adjustment; and,
  • a net decrease of $1.6 mainly related to some project delays.

Variance between 2020–21 Planned Spending and 2019–20 Planned spendingFootnote 38

The 2020–21 planned spending is $12.14 million lower than the 2019–20 planned spending is primarily due to:

  • a decrease of $13.29 million related to Budget 2015 energy transportation infrastructure;
  • a decrease of $5.25 million related to Budget 2017 pipeline safety lifecycle oversight;
  • a decrease of $0.58 million related to Budget 2017 communication and access to information capacity;
  • a decrease of $0.22 million related to the Trans Mountain Expansion Project reconsideration; and,
  • a net increase of $7.2 million related to compensation allocation as a result of adjustments made to terms and conditions of service or employment of the federal public administration adjustment.

2019–20 Budgetary actual gross spending summary (dollars)

2019–20 Budgetary actual gross spending summary (dollars)
Core responsibilities and Internal Services 2019–20
Actual gross spendingTable Note a
2019–20
Actual gross spending for specified purpose accounts
2019–20
Actual revenues netted against expenditures
2019–20
Actual net spending
(authorities used)
Energy Adjudication 21,550,144 21,550,144
Safety and Environment Oversight 24,588,408 24,588,408
Energy Information 9,235,424 9,235,424
Engagement 7,611,046 7,611,046
Subtotal 62,985,022 62,985,022
Internal Services 35,011,968 35,011,968
Total 97,996,990 97,996,990

Actual Human Resources

Human resources summary for Core Responsibilities and Internal Services

Human resources summary for core responsibilities and Internal Services
Core responsibilities and Internal Services 2017–18
Actual full-time equivalents
2018–19
Actual full-time equivalents
2019–20
Planned full-time equivalents
2019–20
Actual full-time equivalents
2020–21
Planned full-time equivalents
2021–22
Planned full-time equivalents
Energy Adjudication 125.7 103.9 119.8 119.2 108.2 108.5
Safety and Environment Oversight 124.5 120.2 159.2 131.0 114.0 114.3
Energy Information 55.5 47.8 34.2 43.8 29.0 29.1
Engagement 24.0 34.0 44.0 37.8 39.3 39.4
Subtotal 329.7 305.9 357.2 331.8 290.5 291.3
Internal Services 151.6 170.6 161.3 162.2 162.5 161.7
Total 481.3 476.4 518.5 494.0 453.0 453.0

The increase of 42.06 FTE from 2018–19 actual to the 2019–20 planned is mainly due to funding related to Budget 2018 transition to new impact assessment and regulatory processes to assist the organization in implementing the transition to the CER.

The decrease of 24.47 FTE from 2019–20 actual to the 2019–20 planned is the net effect of staffing delays related to Budget 2018 as well as a result of implementation of CER Act.

The decrease of 65.5 FTE from 2019–20 planned to 2020–21 plannedFootnote 39 is mainly attributed to:

  • Sunsetting of Budget 2015 energy transportation infrastructure
  • Sunsetting of Budget 2017 for pipeline safety lifecycle oversight

Expenditures by vote

For information on the CER’s organizational voted and statutory expenditures, consult the Public Accounts of Canada 2019–2020.Footnote 40

Government of Canada spending and activities

Information on the alignment of the CER’s spending with the Government of Canada’s spending and activities is available in the GC InfoBase.Footnote 41

Financial statements and financial statements highlights

Financial statements

The CER’s financial statementsFootnote 42 (audited) for the period ended March 31, 2020, are available on the departmental website.

Financial statement highlights

Condensed Statement of Operations (unaudited) for the year ended March 31, 2020 (dollars)

Condensed Statement of Operations (unaudited) for the year ended March 31, 2020 (dollars)
Financial information 2019–20
Planned results
2019–20
Actual results
2018–19
Actual results
Difference
(2019–20
Actual results
minus
2019–20
Planned results)
Difference
(2019–20
Actual results
minus
2018–19
Actual results)
Total expenses 108,008,880 117,383,336 124,393,406 9,374,456 (7,010,070)
Total revenues
Net cost of operations before government funding and transfers 108,008,880 117,383,336 124,393,406 9,374,456 (7,010,070)

The actual net cost of operations before Government funding and transfers in 2019–20 was $9.37 million higher than the planned results for the same fiscal year. The net increase is primarily due to:

  • an increase of $2.35 million related to Budget 2019 CER transition cost;
  • an increase of $0.63 million related to Budget 2018 transition to new impact assessment and regulatory processes;
  • an increase of $2.72 million related to compensation allocation as a result of adjustments made to terms and conditions of service or employment of the federal public administration adjustment;
  • an increase of $0.64 million related to the TMX Project reconsideration; and,
  • a net increase of $3.03 million mainly related to employee benefit pension.

The actual net cost of operations before government funding and transfers in 2019–20 was $7.01 million lower than the actual results for the previous fiscal year. The net decrease is primarily due to:

  • a decrease of $14.71M levy remission to Northern Gateway Pipelines Limited Partnership;
  • a decrease of $3.86 million related to TMX Project reconsideration;
  • a decrease of $1.69 million related to compensation allocation as a result of adjustments made to terms and conditions of service or employment of the federal public administration adjustment;
  • an increase of $2.35 million related to Budget 2019 CER transition cost;
  • an increase of $9.19 million related to Budget 2018 transition to new impact assessment and regulatory processes; and,
  • a net increase of $1.71 million related to employee benefit plans.

Condensed Statement of Financial Position (unaudited) as of March 31, 2020 (dollars)

Condensed Statement of Financial Position (unaudited) as of March 31, 2020 (dollars)
Financial information 2019–20 2018–19 Difference
(2019–20 minus
2018–19)
Total net liabilities 26,566,531 25,836,220 730,311
Total net financial assets 15,064,072 16,162,558 (1,098,486)
Departmental net debt 11,502,459 9,673,662 1,828,797
Total non-financial assets 15,294,728 17,649,079 (2,354,351)
Departmental net financial position 3,792,269 7,975,417 (4,183,148)

Departmental net debt in 2019–20 has an increase of $1.83 million, in comparison to 2018–19. This is mainly due to the increases related to annual leave as well as sick leave.

Departmental net financial assets in 2019–20 has a decrease of $2.35 million, in comparison to 2018–19. This is mainly due to depreciation associated with leasehold improvements.

Date modified: