Submeters are certified electricity meters that measure electricity consumption used by each unit of multi-unit residential buildings in order to individually bill owners and tenants for the electricity they use. Advances in metering technology now make it possible to retrofit condominiums by installing submeters in the utility closets located in condominium hallways. Most condominiums feature an electrical "closet" on every second or third floor. These closets contain breaker panels that house individual breakers for each condominium "suite".

Smart meters record electricity use by time of day and enable the electrical utilities to set varying rates for power. Peak periods are charged at a higher rate and non-peak periods are charged at a lower rate. Some submeters are also smart meters.

Bulk metering is when electricity usage is metered for the condominium complex as a whole. The total cost for electricity is then divided among condominium owners, as determined by a condominium association's bylaws, and then charged back to the owners through their maintenance or condominium fees. Energy hogs and energy savers pay the same rate, often based on square footage, and there is no incentive to conserve.

First, it's the law. In March 2006, the Ontario Government passed the Energy Conservation Responsibility Act, which includes provisions to allow for the individual metering, or submetering, of condominium units, through local distribution or third party companies. The act requires that all consumers receive their smart meter by the end of 2010.

Second, it's the right thing to do. Submetering provides an incentive to conserve energy by rewarding those who use less electricity through reduced energy costs.

The benefits of submetering are substantive. The average electricity savings, depending on the type of heating used, can range from 15 to 30 percent. Meanwhile in bulk metered buildings where the cost of electricity is hidden in fixed fees, research shows that 10 percent of residents use 25 percent of the electricity and 70 percent of residents' use 50 percent of electricity.

Yes, if you use energy wisely. Research has shown that the average electricity saving as a result of submetering is 15 to 20 percent in gas-heating buildings and 20 to 30 percent in electricity heated buildings.

With submetering, condominium owners receive an individual bill for electricity. There are a number of billing and collection options available to condominium associations. First, condominium associations can take on the responsibility for billing and collection and provide each owner with an individual electricity bill. However, it is more common that third party private sector billing and collections companies are contracted to prepare individual electricity bills and provide collection services for a condominium association. Most Ontario local distribution companies (hydro companies) do not currently offer a submetering service.

Submeters can be installed by an independent third-party energy management company or your local utility, if they offer this service. Typically, a condominium association would seek quotations from two to three suppliers. Each supplier would then prepare a proposal for and/or provide a presentation of their proposed solution. The Board can then select a supplier based on their preferred solution.

Submetered buildings receive their power from local utility companies, the same companies that provide electricity to bulk metered buildings.

No. There is no need to enter any individual suites to read the meters. Sometimes meters are located in electrical closets in the public halls, sometimes in the basement, sometimes in a storage closet. Regardless of their location, the meters are generally read electronically each month via an Internet connection.

Condominium associations can choose to have their building submetered by the supplier of their choice. It is important for condominium boards and executives to review the specifics of the contract carefully. As with all industries, some suppliers are more reputable than others. For example, some private resellers will mark up the cost of electricity, which is currently not permitted by the Ontario Energy Board. Also, condominium owners should be able to choose a competitive electricity retailer of their choice. On the other hand, private suppliers are generally more cost-effective than local utilities with respect to the installation of local utilities. Whatever submetering supplier is selected, condominium associations should make sure that the technology used is capable of handling future requirements including the ability to interface with thermostats, and support demand response programs. It is probably best to avoid submetering equipment that will require condominium owners to take on the responsibility of installing dedicated computers on-site or backing up their own data files.