Submetering for Condos Newsletter - Issue #2

Ontario submetering legislation finalized

Condominium Boards can submeter without need for new by-laws or amendments to their Declarations

Ontario’s much anticipated changes to the Electricity Act and the Ontario Energy Board Act were finalized on August 1, 2007. The new regulations are an important part of the Ontario government’s plan to reduce household energy consumption in the province. They cover the installation of smart meters and smart meter submetering systems in multi-unit condominiums as well as the licensing of submetering activities.

Highlights of the regulations of specific interest to condominium owners and Boards and/or associations include:

• Condominium corporations now have the option to submeter their buildings for electricity consumption. This is a modification from the original draft legislation that had required all condominium buildings to be submetered before 2011;
• The regulations give Condominium Boards the authority to submeter their buildings without having to amend their Declarations or enact new by-laws;
• The legislation requires that all providers of submetering equipment, installation and/or services must be licensed by the Ontario Energy Board;
• The authority of Condominium Boards to install submeters is effective December 31, 2007 in order to give the Ontario Energy Board time to deal with licensing activities; and
• Boards who proceed with submetering must, of course, still comply with all aspects of the Regulations including those concerning equipment, installation and other matters.

Presently about 85 percent of multi-unit apartment and condominiums buildings in Ontario are “bulk metered”. The building owner or condominium board pays the utility bill and a flat electricity charge is included in a tenants monthly rent or as part of condominium fees, based on square footage rather than consumption. Electricity charges for common areas are shared equally among residents. Everyone pays the same amount for electricity despite how much they do or do not use.

Submetering is a cost-effective, efficient and highly effective way to promote electricity conservation and control costs. Submetering is also fair. Residents pay for the electricity they use. Conservers pay less while energy “hogs” pay more. Under a bulk metering system, the energy savers actually subsidize the cost of electricity for energy wasters and provide no incentive to reduce energy use.

Research shows that when consumers pay for the electricity they use, the overall consumption of energy goes down. In fact, studies have shown that when submetering is installed in multi-unit complexes, electricity consumption is reduced by as much as 25 percent. That’s good news for condominium Boards wanting to reduce overall costs.

Submetering is an easily implemented option to reduce our overall energy footprint and make the right choice for the environment. For the Ontario government, it’s a relatively painless way to ease the pressure on Ontario’s constrained energy supply.

Find out more about electricity submetering, visit www.submeteringforcondos.com or email your questions to submetering101@triacta.com

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