In January 2023, the Board announced its decision to introduce new regional rates bands for taxi meter rates that will apply across the province, except where Board standardized rates apply.

Please note that existing rates structures will remain in place until the Board has calculated the new rates and implemented the new structures.

Advantages of rates bands

Taxi rates have historically been set by licensees applying to the Board and proposing a rate with supporting information. As a result, outside of common rates rules areas, the flag, distance, and waiting time rates can vary significantly. While it is important to consider the reasonable rate of return for taxi licensees in an area, it is also important to provide consistent and transparent rates for the public.

A rates band structure provides enhanced flexibility for licensees, allowing them to be responsive to changes in their business, and makes rate changes easier and more efficient from an administrative perspective: 

• As long as licensees choose a rate within the Board’s rates band for the region, they are not required to submit an application or supporting documents to the Board to justify their choice. They are simply required to notify the Board and follow a streamlined process. This saves application fees and time.
• Licensees will have the opportunity to change their rate (within the rates band) at regular intervals if they wish. Note: The precise interval is yet to be determined, for example, it could be every four months, or every six months etc.
• Licensees can choose a rate within the band that best fits the service that they offer. For example, some licensees may want to offer a premium service at a higher cost, while others may prefer to offer a simple service at a lower cost.
• Licensees can choose a rate within the band that balances their operating costs with their margin of profitability, while addressing changing market conditions.  

Setting rates bands

To set the minimum and maximum rates in the rates band for a given region, the Board will review taxi cost data, trip data, and other business attributes, then conduct quantitative analysis and consult with licensees, as required. The Board will consider:

• whether the proposed band minimum rate supports a reasonable rate of return for an average taxi business that is effectively operated, and
• whether the proposed band maximum rate is affordable to customers.

Under a rates band, licensees can have different rates from other taxi licensees in the region, provided their rates are within the established band. 

Making changes to rates

Once the initial rates band has been implemented in a region, licensees will have the opportunity to change their rate within the band at regular intervals if they wish. Licensees will also have the option to remain at the same rate, as long as it remains within the rates band.

No application or fees will be necessary to make a rate change within the band. The Board will establish a streamlined notification process.

Choosing rates outside bands

If a licensee wishes to have a rate outside their rates band (i.e., lower than the minimum or higher than the maximum), they will be required to submit a full application to the Board. The licensee will need to pay an application fee and provide a rationale for the different rate.

Cost of living adjustments

After moving to a rates band structure, any cost-of-living adjustments will be automatically applied by the Board to the regional rates band. 

In January 2023, the Board announced its decision to introduce regional rates bands for taxi meter rates across the province. As an exception, the Board also decided to introduce standardized rates in areas where common rates rules previously applied.

Please note that existing rates structures will remain in place until the Board has calculated the new rates and implemented the new structures.

Advantages of Board standardized rates

Taxi rates have historically been set by licensees applying to the Board and proposing a rate with supporting information. In common rates rule areas, all licensees were required to charge one consistent meter rate. While it is important to consider the reasonable rate of return for taxi licensees in an area, it is also important to provide consistent and transparent rates for the public.

Board standardized rates offer key benefits for both customers and taxi licensees.

• They provide consistent, predictable, and transparent rates.
• They provide an efficient and streamlined administrative process for updating rates along with automatic adjustments for inflation.
• They are set and monitored based on real taxi data and economic analysis.
• They allow the Board to proactively identify industry-wide changes and adjust taxi rates in a streamlined manner.

Setting Board standardized rates

As a first step, the Board will establish regional rates bands across the province. These will be calculated based on cost data supplied by taxi licensees, as well as trip data and other business attributes. Then the Board will conduct quantitative analysis, looking at profitability and sustainability factors to support a reasonable rate of return for an average taxi business that is effectively operated in the area, balanced with customer affordability.

Once the regional rates bands are established, the Board will determine standardized rates that will apply in areas where common rates rules previously applied to meter rates. These will be expressed as a fixed percentile within the rates band for that region. 

Making changes to rates

Once implemented, licensees in a region may request a review or recommend changes to the Board standardized rate. The Board will continue to monitor profitability, sustainability, and affordability as cost data is collected from taxi licensees and analyzed on an annual basis.

If an individual licensee in a Board standardized rate area wishes to have a different rate for their business, they can still apply to the Board for a rate change. However, they must pay an application fee and provide information to justify the rate change and the reason they should be removed from the Board standardized rate regime.

Cost of living adjustments

After moving to Board standardized rates, any cost-of-living adjustments will be automatically applied by the Board to the set standardized rate.