Submetering for Condos: 101
Everything you wanted to know,
but didn't know who to ask!
What's submetering?
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. Traditionally, residents in multi-unit buildings have paid a flat, across the board utility charge included in rent or condominium fees. All residents, regardless of how much energy they consumed, were charged the same rate. Submetering helps to rewards those who conserve energy through reduced energy bills. Similarly, submetering provides an incentive for heavy electricity users to make smarter decisions about how and when they use electricity. All submeters must meet the same accuracy and tamper-resistant standards as traditional meters, and must be certified by Measurement Canada.
Why submetering, why now?
In 2006, the Ontario government passed legislation that includes provisions to allow for the individual metering, or submetering, of condominium units, through local distribution or third party companies. Why? Research shows that when consumers are required to pay for the electricity they use overall consumption goes down. In fact, studies have shown that when submetering is installed in condominiums, apartment buildings and other multiple unit complexes, the reduction in electricity consumption can be as high as 25 percent. That's good news for Ontario's electricity supply which is already at capacity. Condominium associations that fail to comply with the new regulations may face financial penalties.
Meanwhile, the Ontario government will soon be rolling out plans for "smart metering", a process that charges different rates for electricity depending on what time of day the electricity is consumed - peak periods are charged at higher rates. Smart metering also requires a submeter so it makes sense for condominium associations and owners to install submeters sooner than later.
How does it work?
Submetering is a practical solution for existing buildings where the installation of conventional meters is inconvenient and expensive. Submeters are easily installed alongside existing main electrical feeds. These feeds are typically located in an electrical closet found on each floor, or sometimes on every other floor, of a multi-unit complex. The submeters are simply bolted to the wall beside the existing electrical panel. An electrician or installer then connects the submeters to the main panel and programs the submeter to meter electricity use for each specific unit. Condominium owners are without power for about an hour during the installation process.
How do I get a submeter installed?
Once a condominium association decides to have submeters installed, the next step is to contact a local service provider, either a private company or public utility. To provide a quote, the service provider will need to make a site visit to fully inspect the condominium facility, its existing wiring, and to fully understand the layout of the building. Typically a condominium association will seek quotes from two or three service providers and ask each to present their solution to the condo association members and/or the Board of Directors. Condominium directors should consult their condominium lawyer prior to selecting a supplier to ensure that Ontario regulations are met.
What difference will submetering make?
When the submeters are up and running, condominium owners will begin to receive an individual electricity bill. Research has shown that within a typical condominium complex about 60 percent of residents will see a net reduction in their monthly costs due to reductions in energy consumption. About 20 percent of residents will experience no net change in monthly expenses while the remaining 20 percent will see their monthly costs increase. Submetering provides the information and incentive necessary to use electricity more cost-effectively and reduce their expenses. Previously, when a flat electrical fee was charged, either separately or as part of a condominium fee, 60 percent of the residents who were conservers of energy were in fact subsidizing the other 40 percent who were either indifferent or heavy users of electricity.
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