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Sub-Metering at the OEB

Sub-metering (also called “suite metering”) directs a building’s electricity supply through individual meters that measure the use of each apartment.  This could reduce energy use by making tenants aware of how much electricity they are using.  But many landlords see installing these meters as a way to pass on the responsibility for electricity costs to individual tenants since most tenants now pay for electricity as part of their rent.  Many tenants complained about this practice to the Ontario Energy Board (OEB).

The OEB issued a “compliance bulletin” to these landlords warning that any electricity sub-meters installed in rental apartment buildings on or after November 3, 2005 were installed illegally.  They said that they expected all sub-metering activities, including the use of the sub-meters for billing tenants, to cease immediately.

The OEB then started a proceeding to decide if it would legally authorize electricity sub-metering in rental units.  ACTO intervened in this written hearing.  We argued that the OEB should not give this authorization because it is outside their jurisdiction and the Ministry of Municipal Affairs and Housing was already developing rules about this under the Residential Tenancies Act. 

The OEB decision and Order, released in August 2009, confirmed that landlord-initiated sub-metering activity after November 3, 2005 was not authorized.  It confirmed that tenants have the right to refuse to participate in sub-metering and set a number of conditions on landlords who want to download electricity costs onto tenants in the future.  These include:

  • an independent energy audit relating to rental units and the building
  • a detailed description of how the landlord calculated the tenant’s rent reduction
  • a tenant’s “voluntary and informed” consent in writing after reviewing the energy audit and the landlord’s explanation of the rent reduction. 

The Ontario Legislature has now passed changes to the Residential Tenancies Act which require consent from a tenant to sub-metering and set rules for rent reductions and energy conservation measures. (See Energy Consumer Protection Act)  These rules came into force on January 1, 2011.